Xbox Denies Sale Speculation Amid Profitability Concerns
Xbox division CEO Asha Sharma has denied rumors that Microsoft plans to sell its gaming division. In an interview reported by The New York Times, Sharma said that while the company is open to partnerships and new operating models, there are no immediate plans for a sale.
The speculation about a potential sale reflects concerns over Xbox's returns compared to other profitable divisions within Microsoft, such as cloud-computing and artificial-intelligence businesses. According to reports, Xbox's accountability margins amount to just 3% profit, despite tens of billions of dollars invested in game publishers and studios.
Sharma has previously acknowledged that the business is not in a healthy state, but emphasized that Microsoft is taking a long-term view as it works toward success. The company is reportedly working on several high-profile projects, including Halo, Diablo 5, and StarCraft, which are expected to be released over the next few years.