Xbox will remain part of Microsoft, Asha Sharma, CEO of the company’s gaming division, told the New York Times, rejecting speculation that the unit is being prepared for sale amid a recent wave of layoffs, project cancellations and internal reorganization.
Reorganization affects staff and studio structure
Microsoft’s gaming arm has undergone what has been described as one of the largest restructurings in Xbox history, with hundreds of employees impacted by recent job cuts and the possibility of further reductions.
The move also changed the internal alignment of studios and franchises: the Halo franchise was moved under Activision Blizzard’s structure, and Obsidian Entertainment was reassigned to Bethesda Game Studios, shrinking the roster of teams reporting directly to Xbox.
CEO emphasizes long-term plan despite changes
Sharma sought to quash suggestions that the reorganization signaled an intent to sell or dismantle the division. “Xbox is not for sale,” she said, while noting the company may alter its operating models, pursue partnerships and take other steps needed to position the business for success.
She affirmed that Microsoft remains committed to a long-term vision for gaming, including an objective to expand the Xbox ecosystem’s reach to 1 billion people, even if the division’s internal structure will look different going forward.
What stays uncertain
While Sharma’s statement rules out a sale for now, it does not imply the current organizational setup will be preserved. The recent transfers of studios and franchises underscore a broader shift in how Microsoft is organizing its gaming operations, and Sharma acknowledged there is still work ahead to implement the division’s revised strategy.
