Asha Sharma says ‘Xbox is not for sale’ as Microsoft’s gaming business is being streamlined for spin-off

Microsoft’s Great Reset of Xbox looks a lot like what a company might do if it wanted to get out of the gaming business or spin off the division into a standalone entity. While mass layoffs and restructuring are a prelude to Xbox shopping, CEO Asha Sharma remains adamant that that’s not the plan.

“The Xbox is not for sale,” Sharma said The New York Times in a new profile. “We will do everything in our power to make the company successful, and we will look at the right partnerships, the right operating model and whatever else is necessary to make that happen.”

The response, which the interviewer described as “bob and weave,” comes as many analysts are predicting an eventual divestiture from Xbox. The gaming division has always been a tricky choice for Microsoft, whose other businesses, including cloud computing and AI, still outpace it despite the massive $70 billion acquisition of Activision Blizzard in 2023. As hardware sales have struggled and a big bet on Game Pass failed to materialize, the case for a bailout has only grown stronger.

Earlier this year, The information reported on existing discussions within Microsoft around the idea of ​​splitting up Xbox. This could take the form of an outright sale to a separate entity, or simply turn Xbox into a standalone subsidiary or joint venture with another company. The reason for this would be to take the expensive, high-risk and successful gaming business off the rest of the company’s books, and to strengthen Microsoft’s finances in the process.

But while killing off or selling off a number of smaller studios and handing others off to in-house publishing divisions like Activision and Bethesda may seem like a prelude to an eventual split, Microsoft’s recent bets can also be seen as longer-term investments. Emptying Halo Studios and essentially starting from scratch is a major strategic pivot that might not bear fruit for another five years. The same goes for trying to make quicker sequels to other big franchises like To fall And Diabloof which a new entry has been announced for 2029.

“We have a long way to go with Microsoft,” Sharma said. The New York Times“and we’re going to take a long-term view.”