Abstract:
Xbox CEO Asha Sharma denied that Microsoft is considering selling the Xbox business and made it clear that "Xbox is not for sale." She said the company will take all necessary measures to ensure business success, including finding suitable partners, adjusting its operating model, and taking other required actions.
Previously, "The Information" reported that Microsoft CEO Satya Nadella and Chief Financial Officer Amy Hood had considered spinning off Xbox; this month, the media also said that the two had recently turned to support the reform plan proposed by Sharma. The report pointed out that Microsoft management currently prefers to promote the recovery of Xbox through large-scale restructuring rather than splitting the game business into joint ventures or completely spinning off.
Sharma announced the Xbox reorganization in June this year and called it a business "restart." Microsoft plans to lay off up to 3,200 Xbox employees in the fiscal year ending in June 2027. Nadella also said in a podcast recently that the team is streamlining its structure and needs to design a sustainable business model so that more people can play the game.
The latest round of adjustments has transferred "Halo" to Activision, and the development teams responsible for "Sea of Thieves" and "Age of Empires" have also changed ownership. Xbox is also reducing layers of management, divesting smaller studios, and focusing resources on larger franchises. The current reorganization direction may make Xbox a wholly-owned subsidiary of Microsoft like LinkedIn, rather than an independent spin-off; future sales cannot be completely ruled out, but the current goal is to resume growth.
Sharma said that the cooperation between Xbox and Microsoft still has a long way to go, and the company will focus on the long term. However, she also said in February this year that a plan will remain a plan until it is no longer a plan.
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