Xbox Restructuring and Strategy
Xbox CEO Asha Sharma has denied reports that Microsoft is considering selling off its Xbox business. Previous media reports indicated that top Microsoft executives had previously considered spinning out Xbox entirely before throwing their support behind Sharma's plans to overhaul the unit.
Xbox Is Not For Sale
Xbox CEO Asha Sharma is taking a long-term view of Microsoft’s gaming division.
“Xbox is not for sale,” says Sharma in an interview. “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.”
Leadership Support and Layoffs
Top Microsoft executives have favored a major Xbox reset as the primary plan for the gaming unit instead of spinning the business out entirely. Sharma announced her restructuring plans earlier, which include substantial employee layoffs over the course of the 2027 financial year.
Microsoft leadership has publicly backed the restructuring and streamlining efforts, emphasizing the need to build a sustainable business model that delivers gaming to a wider audience.
Studio Reorganization
The recent restructuring has shifted major franchises like Halo under Activision, alongside the developers behind Sea of Thieves and Age of Empires. These changes are part of a broader shake-up across Xbox Game Studios.
Microsoft is actively reducing management layers, offloading smaller studios, and refocusing on core franchises to restore growth. “We’ve got a long way to go with Microsoft,” says Sharma, “and we’re going to take the long-term view.”
