Asha Sharma Says "Xbox Is Not For Sale" Amid Fears of Restructuring

Xbox CEO Asha Sharma has denied that Microsoft plans to sell its gaming division following a new round of layoffs and a series of structural changes. The statement comes amid the second major Xbox staff cut of 2026, which eliminated 268 jobs, as well as the reorganization of various studios. Among the changes are the transfer of Halo development to Activision Blizzard Studios and the consolidation of other teams. 

The possibility of an eventual sale of Xbox gained momentum about four months ago. It's worth remembering that in June, The Information reported that Microsoft CEO Satya Nadella and CFO Amy Hood were evaluating alternatives such as transforming Xbox into a wholly owned subsidiary, creating a joint venture with other companies, or even spinning off the division – measures that could facilitate a future sale. At the time, however, the publication stressed that there was no imminent plan for this.

Now, in an interview with the New York Times, Sharma was direct in denying that Xbox is being prepared for sale. "Xbox is not for sale," the executive stated. She then added: "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". 

The statement comes as Sharma leads a broad overhaul of the division, with cost reductions and a change in how studios and franchises are managed.

The restructuring began after Sharma took over the leadership of Xbox and includes staff cuts, studio closures or sales, and a focus on investments in major franchises. In July, the executive announced 1,600 layoffs and the sale of at least four studios; in September, Xbox confirmed another 268 cuts and further consolidations. According to The Information, Sharma also intends to accelerate the production of games from franchises such as Halo, Fallout, and The Elder Scrolls, while reducing investments in teams considered less of a priority.

Microsoft CEO Satya Nadella has shown support for Sharma's strategy and praised the "optimization" she has been implementing on Xbox. But there are those who are not satisfied with the measures adopted by Sharma. Recently, Chris Hays, lead iD Software programmer, spoke openly about the fallout from the Xbox cuts and said it has become “impossible to develop AAA games on the same scale as the team’s previous work.”