Xbox Not For Sale Asha Sharma Confirms Amid Studio Exits

Xbox CEO Asha Sharma has publicly denied reports of a sale, emphasizing a long-term commitment to Microsoft while outlining a corporate reset to address financial and operational challenges. Appointed earlier this year, Sharma stated in an interview that Xbox is not for sale. She emphasized the company's dedication to turning its fortunes around through internal reforms and strategic partnerships.

Sharma cast doubt on the spinoff option. "We've got a long way to go with Microsoft, and we're going to take the long-term view," she said. The statement was made to counter speculation that Microsoft is considering selling its gaming business.

Studio departures signal strategic shift

Multiple studios have left Xbox or face uncertain futures as part of a broader restructuring. Double Fine, Compulsion Games, and Undead Labs have gone independent. The fate of Ninja Theory and Arkane remains undecided.

Key franchises are being realigned. Xbox handed Activision control of the entire Halo series earlier this month. Rare and World's Edge were also moved under Activision, while Obsidian Entertainment was moved under Bethesda. Remaining studios under Xbox Game Studios include The Coalition, Playground Games, Mojang, InXile Entertainment, and what's left of Halo Studios.

Reset includes major cuts and refocus

The Xbox reset involves significant job cuts and a strategic refocus. Sharma outlined the challenges, noting the company entered the current generation with a smaller install base and higher costs. Bets on Game Pass and a multi-platform strategy did not grow as expected, weakening the core business. Now, facing a severe industry hardware crisis, a reset is deemed necessary.

The reset plans to cut a total of 3,200 jobs across the company before next summer. Nearly 2,000 staff have already been laid off, with roughly 1,300 more cuts expected. Various games have been canceled as Xbox shifts focus to fewer, bigger franchises like The Elder Scrolls, Fallout, and Minecraft.

Microsoft's ambitious target is for Xbox to reach 1 billion people a day. However, questions hang over the viability of Xbox’s confirmed next-gen console, Project Helix. Analysts have suggested big companies may pick off parts of Xbox as Microsoft continues to trim the business.

Analysts question motives behind changes

Despite leadership's denials, analysts remain skeptical about the true intent behind the reset. Some suggest the moves could be making Xbox more attractive for a spinoff, partnership, or eventual divestment. Others note Xbox would likely have few suitors interested in buying the business outright, especially after Microsoft's $69 billion acquisition of Activision Blizzard.

Reports have speculated that an eventual spinoff could create an independent Xbox that partners with Microsoft. Another report said Microsoft hadn't ruled out turning the Xbox brand into a wholly-owned subsidiary, which could lead to it being operated as a joint venture or even sold. These analyses follow previous rumors and the sweeping changes that led to speculation about a sale.

Amid the restructuring, Sharma recently signed a deal with Kojima Productions on the action-stealth game Physint, a project PlayStation had previously pulled funding from. The report mentions PC, PS5, and Xbox Series X/S as platforms for upcoming titles. Xbox is hoping Gears of War: E-Day, releasing next week, and Clockwork Revolution, slated for next year, will make a splash as console exclusives.