Is Microsoft Selling Xbox? Asha Sharma Responds

After months of speculation about Microsoft’s future in gaming, Xbox CEO Asha Sharma has answered directly: Xbox is not for sale.

In an interview with The New York Times, Sharma rejected reports that Microsoft might sell or spin off its gaming division. She also made clear that Microsoft is prepared to rethink how Xbox operates to put the business on a stronger footing.

“Xbox is not for sale,” Sharma said. “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.”

Sharma’s comments, alongside reports that Microsoft’s senior executives have backed her plans, point to a reset within Microsoft, rather than an announced plan to sell the brand.

Is Microsoft selling Xbox?

Microsoft’s current public position is that Xbox is not for sale.

Rumours of a possible sale gained traction after reporting in June suggested Microsoft CEO Satya Nadella and CFO Amy Hood had considered spinning out Xbox. Later reporting indicated that the executives had become supportive of Sharma’s overhaul plans.

That distinction is important. A spin-off would separate Xbox from Microsoft’s existing corporate structure; a sale would transfer ownership. Sharma’s comments do not announce either move. Instead, she says Microsoft intends to pursue the partnerships and operating model it believes can support Xbox’s future.

The statement is a public declaration from the head of Xbox, with reporting pointing to executive backing for the current strategy. It should not be mistaken for a separately published board resolution: the available coverage does not identify one.

Why are people speculating about an Xbox sale?

The speculation has grown alongside a substantial restructuring of Microsoft’s gaming business.

Sharma announced a broad reset in June, and Microsoft is planning significant job cuts during its 2027 financial year. The changes have also included shifts in how some franchises and development teams are organised, alongside a focus on reducing management layers and concentrating resources around major properties.

For fans, those moves can look like signs that Microsoft is preparing to exit gaming. But restructuring and selling a business are not the same thing. A company can cut costs, reorganise teams and change its operating model while retaining ownership.

That appears to be the direction Microsoft is pursuing for now. Nadella has publicly supported the streamlining effort while saying Xbox needs a sustainable business model that can bring gaming to more people.