Sharma Denies Xbox Sale Amid Layoffs and Restructuring
Asha Sharma, Microsoft's CEO, has denied reports that Xbox is up for sale. Amid concerns about restructuring and layoffs, which some analysts see as a prelude to divestiture, Sharma remains adamant that 'Xbox is not for sale.' The company is streamlining its gaming division, with mass layoffs and a shift in focus towards the cloud.
The $70 billion acquisition of Activision Blizzard in 2023 was seen as a major bet on Microsoft's gaming ambitions. However, recent struggles with hardware sales and Game Pass have led some to speculate that Xbox might be spun off or sold separately. This could allow Microsoft to strip the high-risk gaming business from its books and bolster its financials.
Sharma told The New York Times, 'We will do whatever it takes to set the company up for success, and we will look at the right partnerships, the right operating model, and everything needed to achieve that.' This statement has been interpreted as a 'bob and weave' by some analysts, who see it as a way of avoiding direct questions about Xbox's future.
Microsoft's recent moves in the gaming industry have been seen as both cost-cutting measures and longer-term investments. The company is gutting Halo Studios and starting over from scratch, while ramping up quicker sequels to big franchises like Fallout and Diablo. Sharma said, 'We've got a long way to go with Microsoft, and we're going to take the long-term view.'