The clarification follows reports from The Information suggesting that CEO Satya Nadella and CFO Amy Hood had previously weighed the possibility of offloading the unit entirely. Instead, leadership has pivoted to a comprehensive overhaul directed by Sharma, which she describes as a strategic reset. This transformation involves significant workforce reductions, with plans to lay off up to 3,200 employees by the end of the 2027 fiscal year.
Asha Sharma dismisses rumors of an Xbox divestiture
“Xbox is not for sale,” gaming chief Asha Sharma declared, effectively silencing speculation that Microsoft might spin off its gaming division. Despite persistent industry rumors regarding a potential sale or joint venture, the company is doubling down on a massive internal restructuring aimed at long-term sustainability rather than an exit.
Nadella recently signaled his approval of these aggressive cost-cutting measures, noting that the team is successfully streamlining operations to build a more sustainable business model. As part of this transition, internal development structures are shifting: the Halo franchise has moved under Activision, while the teams behind Sea of Thieves and Age of Empires are also undergoing realignment. Sharma maintains that the focus remains on securing the right partnerships and operating models to ensure the division's future viability.
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