Sharma Denies Xbox Sale Reports Amid Restructuring
Xbox CEO Asha Sharma has denied reports that Microsoft is considering selling its gaming business. In an interview, Sharma stated 'Xbox is not for sale.' The company's focus is on setting up Xbox for success through partnerships and a new operating model.
The speculation surrounding the future of Xbox began with Sharma's appointment as CEO earlier this year and subsequent layoffs. Microsoft had not ruled out turning Xbox into a wholly-owned subsidiary or potentially selling it, according to The Information via Reuters.
Sharma has emphasized that the company is taking a long-term view, investing in content, platforms, and hardware. Despite struggling with low margins, 3-10x lower than comparable businesses, Microsoft aims to grow Xbox by tapping into markets like Africa and South Asia through cloud computing and investing in Minecraft.
The price of Xbox consoles has increased due to rising storage and memory costs. With a 3% accountability margin (assumed profit margin), down year-over-year, analysts question the viability of an eventual sale or spinoff.