Xbox CEO Asha Sharma has denied that Microsoft is considering selling its gaming business. "Xbox is not for sale," she told The New York Times in an interview published this week, addressing months of speculation about the division's future.
The denial follows a June report that Microsoft CEO Satya Nadella and CFO Amy Hood had discussed spinning Xbox out of the company entirely. A later report in early September said both executives had since backed Sharma's own plan to restructure the unit instead, rather than separate it from Microsoft.
What Prompted the Question
Speculation about Xbox's future has built up alongside a difficult year for the division. Xbox is cutting approximately 3,200 jobs through Microsoft's 2027 fiscal year, which ends in June 2027, part of a broader wave of layoffs across Microsoft's gaming business this year. Those cuts, combined with the earlier spin-off report, fed a narrative that Microsoft might be preparing to exit console gaming or sell the brand outright.
Sharma, who took over as head of Xbox in February 2026 after Phil Spencer's retirement, used the interview to directly reject that narrative. Notably, Nadella himself declined to take part in the Times interview, leaving Sharma to answer for the company's plans.
What Sharma Said
Beyond the flat denial, Sharma described an ongoing review of how Xbox operates going forward. "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," she said, according to the Times.
That language points to continued restructuring rather than a sale — new partnerships and operating changes, but under Microsoft's ownership. It leaves open the possibility of further changes to how Xbox's hardware, services or studios are run, without committing to specifics.
Background on Sharma's Role
Sharma was named executive vice president and CEO of Microsoft Gaming in February 2026, a selection that surprised much of the industry since she had no prior video game industry experience and had been passed over in favor of Sarah Bond, Spencer's former second-in-command. Her background is in user acquisition, product development and AI, spanning previous roles at Microsoft, Meta, Instacart and Porch Group. In April 2026, Microsoft Gaming was renamed simply Xbox, and her title changed to CEO of Xbox.
Her appointment came as Xbox console sales have declined in recent years, a factor Microsoft reportedly weighed heavily when choosing her to lead the business.
Why It Matters
Sharma's comments are a direct, on-record denial of a sale or spin-off, but they don't erase the underlying pressures that produced the speculation in the first place — continued layoffs, an acknowledged operating model review, and a CEO who stayed out of the interview himself. Readers should treat "not for sale" as Microsoft's current public position, not a guarantee against further restructuring of how Xbox does business.
Emma covers gaming news and industry announcements for Gamingonix, reporting on releases, reveals and the stories moving fast.
