Microsoft Xbox Business Not Up for Sale, Despite Layoffs and Restructuring

Xbox CEO Asha Sharma has denied reports that Microsoft is considering selling its entire gaming business. The rumors surfaced after several rounds of layoffs, with around 3,200 roles cut in fiscal year 2027.

Sharma emphasized a long-term approach and said Xbox 'will do whatever it takes' to succeed, including exploring partnerships and finding an appropriate operating model.

The reports claimed that Microsoft was considering separating Xbox or restructuring its corporate structure to make it independently owned but still closely partnered with the company. However, Sharma said, 'We've got a long way to go with Microsoft, and we're going to take the long-term view.'

Nadella pledged support for Sharma's restructuring plan, which has involved several rounds of layoffs.

The CEO welcomed the streamlining of Xbox and said Microsoft needs a sustainable business model that can deliver games to more people. Neither Nadella nor Sharma promised that the Xbox division would avoid further layoffs or strategic 'restructuring' shifts.