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Edition 2026-10-01

CULTURE

Xbox CEO Says Division Is Not for Sale Amid Restructuring

Xbox chief executive Asha Sharma told The New York Times that the gaming division is not up for sale, even as Microsoft undertakes a broader reorganization of its entertainment ...

By gamespot · 24d ago · Source: gamespot

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Xbox chief executive Asha Sharma told The New York Times that the gaming division is not up for sale, even as Microsoft undertakes a broader reorganization of its entertainment portfolio. The statement follows a wave of speculation that the company might divest Xbox entirely, a notion that has circulated among analysts who note that the unit’s profitability lags behind Microsoft’s cloud and artificial‑intelligence services.

Sharma emphasized that the company will pursue whatever measures are necessary to position Xbox for long‑term success, including exploring partnerships and refining its operational model. Microsoft chief executive Satya Nadella has previously indicated that Xbox must become more financially self‑sustaining under Sharma’s leadership, and he praised recent cost‑cutting measures as part of a "streamlining" effort.

The restructuring comes after Microsoft disclosed that Xbox’s profit margin stands at roughly 3 percent, a modest return on the billions of dollars invested in acquiring game studios and publishers over the past several years. While titles such as Halo remain under the Activision umbrella and are slated for development several years ahead, the company has assigned multiple studios to continue work on the Fallout franchise, with several entries at various stages of production.

Upcoming releases from Blizzard, including Diablo 5 targeted for 2029 and a new StarCraft installment slated for 2030, are expected to play a role in the division’s future roadmap. Sharma described the current period as a "long‑term view" for Microsoft’s gaming ambitions, suggesting that the company intends to weather short‑term challenges while pursuing strategic initiatives.

The remarks were made in a recent interview with The New York Times and do not reference any imminent sale or dissolution of the Xbox business.

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gamespot
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high
Published
10/1/2026, 12:20:59 PM
Retrieved
10/1/2026, 12:20:59 PM
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80%
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Read original at gamespot

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