Sharma Denies Xbox Sale Rumors as Microsoft Gaming Business Faces Uncertainty

Xbox CEO Asha Sharma has denied reports that Microsoft is considering selling its gaming business. In an interview with the New York Times, Sharma stated 'Xbox is not for sale.' The denial comes amid significant changes at Xbox, including a major restructuring effort and layoffs affecting nearly 2,000 staff.

The company's focus has shifted to fewer, bigger video game franchises such as The Elder Scrolls, Fallout, and Minecraft. However, some analysts believe the cuts and restructure may be laying the groundwork for a potential sale. The Information reported that Microsoft hadn't ruled out turning the Xbox brand into a wholly-owned subsidiary or even selling it.

Sharma emphasized that Xbox is committed to long-term success and will explore 'the right partnerships, the right operating model, and everything needed' to achieve this goal. She also highlighted Xbox's 500 million monthly players and ambitions for the business to reach 1 billion people a day by tapping into markets such as Africa and South Asia via cloud computing.

Microsoft has faced criticism over its handling of the gaming business, including a significant decline in annual revenue and operating at margins 3-10 times lower than comparable platform and publishing businesses. The company's recent price hikes for Xbox consoles have also raised concerns about the viability of the business.