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Asha Sharma Rejects Xbox Sale Talk After Spin-Off Report

Satya Nadella has praised Sharma's changes while saying Microsoft needs a sustainable model to bring gaming to more people.

Asha Sharma said Xbox is not for sale in a September 30 interview with The New York Times. “We’ve got a long way to go with Microsoft, and we’re going to take the long-term view,” she said. Sharma 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.”

Earlier this summer, The Information reported that Microsoft had considered spinning out Xbox or restructuring it as a wholly owned subsidiary, an arrangement that could, in theory, make a future sale easier. Sharma’s comments reject a sale while leaving room for further changes to how Xbox operates.

Sharma took over Microsoft Gaming in February after Phil Spencer announced his retirement and Sarah Bond resigned. Matt Booty was promoted to chief content officer as part of the leadership transition, which also marked Sharma’s appointment as Microsoft Gaming chief. Recent changes have included Halo moving under Activision Blizzard, Obsidian moving under Bethesda Game Studios, and project cancellations. Teams connected to Gears of War and Age of Empires have also been affected, while some studios have faced closures. Sharma has set a goal of entertaining one billion people through the Xbox ecosystem.

Microsoft CEO Satya Nadella has praised Sharma’s streamlining as “great to see” on an episode of Sources Podcast. He also praised Microsoft’s studios and intellectual-property portfolio, while saying the company still needs a sustainable business model to bring gaming to more people.

Microsoft’s summer layoffs initially affected 1,600 jobs, with another 1,600 planned by the end of its business year. Matt Booty described the July reset as involving 3,200 employees and four studios. Around 250 more employees left in September, and Microsoft said the second wave was about 75% complete during the week of September 28.

Those figures underline the difference between Microsoft’s ownership decision and its operating decision. Xbox can remain inside Microsoft while the company changes its partnerships, internal structure, and studio responsibilities. Sharma has rejected a sale, but her comments make clear that the current model is still being rebuilt.

What do you make of Sharma’s no-sale statement alongside Microsoft’s Xbox cuts? Follow us on X, Bluesky, YouTube, Instagram, Steam, and Telegram.

Angel Kicevski

I've spent half of my life playing video games, ever since the competitive 1.6 era, where I played professionally. Now I am happily married to Margarita Kicevski and have two beautiful children. My goal is to deliver fresh news and updates from the gaming world, but also deliver some juicy guides. Previously, I worked on another website for 8 years and decided to continue my journey here! So basically, I am in this industry for 10+ years... which has been quite a lot, let me tell you!

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