Xbox CEO Asha Sharma said on September 30, 2026, that “Xbox is not for sale.” Her statement rejects a sale, but it does not rule out changes to Xbox’s organization or operating model: she also said Microsoft would consider the partnerships and structure needed for long-term success.
What did the Xbox CEO say?
In a New York Times interview, as reported by Game Developer and VGC, Sharma said: “Xbox is not for sale. 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 added: “We’ve got a long way to go with Microsoft, and we’re going to take the long-term view.”
The clearest reading is that Microsoft is not selling Xbox, according to Sharma. Her remarks leave open operational and organizational changes; they are not a promise that Xbox’s current structure will remain unchanged.
Why did a possible sale or spin-off come up?
In June 2026, The Information reported that Microsoft had not made an immediate decision to spin off Xbox, while options such as a spin-off, a wholly owned subsidiary, or a joint venture had not been ruled out. That account described possibilities, not adopted plans or a confirmed transaction process, as summarized in Game Developer and VGC.
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These arrangements differ in ownership, legal structure, and control. A spin-off would separate Xbox from Microsoft; a wholly owned subsidiary could give Xbox a distinct legal structure while keeping it under Microsoft ownership; and a joint venture would involve shared control with another party. These were reported scenarios, not confirmed current alternatives.
What restructuring is Microsoft carrying out?
In a September 22, 2026 employee update, Microsoft gaming executive Matt Booty said the company was eliminating 268 roles across Halo Studios, other first-party studios, and central functions. Microsoft also said actions since July, including studio divestitures, had brought it roughly three-quarters of the way through previously announced restructuring. Both figures are company-reported, not independently verified employment or progress totals. Booty wrote: “The actions completed since July, inclusive of the studio divestitures, bring us roughly three-quarters of the way through previously announced restructuring.” See the Xbox Wire update.
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Microsoft described the aim as strengthening franchises and games by operating fewer business units, aligning groups that already worked closely, and concentrating publishing expertise. Its September 22 plan included these reporting and studio changes:
- Activision would expand its remit to include World’s Edge and Rare, and develop the next Halo title.
- Bethesda would include Obsidian.
- King would include Microsoft Casual Games.
- Playground and Turn 10 would come together as one studio focused on Forza and Fable.
These are the changes Microsoft outlined in that update, not guarantees about how they would later be implemented.
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Does the denial rule out future structural change?
No. Sharma’s statement rules out a sale in her words, while her reference to partnerships and the “right operating model” signals room for change in how Xbox is organized or operated. Microsoft’s September update independently describes consolidations and reporting changes underway. Neither the restructuring nor the June reporting establishes that a sale or spin-off is imminent, and the available statements do not establish that Microsoft will never sell Xbox.
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