Xbox CEO says Microsoft's gaming business is not for sale

Xbox CEO Asha Sharma has rejected speculation that Microsoft could sell its gaming business, stating directly that Xbox is not for sale. Her comments come as Microsoft continues a major restructuring of its gaming division following layoffs, studio changes and questions about the long-term direction of the business.

Speaking to The New York Times, Sharma said Microsoft remains committed to making Xbox successful while considering partnerships and changes to how the division operates. She also said the company is taking a long-term approach rather than preparing to separate from gaming.

"Xbox is not for sale," Sharma said when asked about the possibility of Microsoft divesting its gaming operation. She added that the company would consider the right partnerships and operating model as it works to improve the business.

The comments address speculation that grew earlier this year after The Information reported that Microsoft leadership had considered restructuring Xbox as a wholly owned subsidiary or potentially creating a joint venture. Such a structure could theoretically make the gaming operation easier to separate from Microsoft, although no sale was announced.

More recent reporting indicates that Microsoft CEO Satya Nadella and CFO Amy Hood are supporting Sharma's plans to restructure Xbox. Sharma's latest statement makes clear that those changes are not currently being presented as preparation for a sale.

Sharma became Microsoft's gaming chief in February 2026 following Phil Spencer's decision to retire. Microsoft later changed her title to CEO Xbox as part of a broader update to the gaming organization's identity and leadership.

Since taking over, Sharma has overseen substantial changes across the business. Microsoft announced plans to cut thousands of gaming roles during its 2027 financial year, while several studios and teams have also been reorganized.

The changes have contributed to questions about Microsoft's commitment to Xbox, particularly as the company invests heavily in areas such as artificial intelligence and cloud computing. Sharma has instead described the restructuring as an attempt to build a healthier and more sustainable gaming operation.

Microsoft CEO Satya Nadella recently expressed support for the work being carried out under Sharma. He said the streamlining of the organization was positive and pointed to Microsoft's collection of studios and gaming franchises as reasons for confidence in the business.

Nadella has also said Xbox needs a sustainable business model that can bring games to more players. Microsoft now publishes across Xbox consoles, PC, PlayStation, Nintendo platforms, mobile devices and cloud services rather than relying entirely on its own hardware.

Sharma has maintained that consoles remain an important part of that strategy. Microsoft is also developing another generation of Xbox hardware while expanding its games across other platforms.

Sharma said Xbox still reaches around 500 million monthly players and indicated that Microsoft has significant work ahead before its gaming strategy reaches its goals. Her comments do not rule out further restructuring, partnerships or changes to how individual studios operate.

They do, however, provide Microsoft's clearest response so far to speculation about selling the division. Xbox remains part of Microsoft, with Sharma saying the company intends to take a long-term approach as it works through its current restructuring.