NEW YORK — Xbox CEO Asha Sharma said the division is not for sale, pushing back on speculation that Microsoft is exiting the games business. Sharma made the comments in a New York Times profile published Sept. 30, following months of restructuring within the gaming group.
Sharma replaced former Xbox head Phil Spencer in February. Her tenure has seen thousands of employees laid off and Xbox Game Studios broken up. Microsoft has slimmed its portfolio, divesting four studios and canceling various projects.
The cuts included studios like Ninja Theory, which is on a path to closure, and Double Fine, which was divested completely.
Under Sharma’s leadership, the Xbox team has adjusted its core offerings. Game Pass prices were lowered following declining subscriber numbers. The service also removed a key offering, ceasing day-one availability for new Call of Duty games, a significant cost reduction.
Further changes to Game Pass are rumored, and Microsoft has already imposed time limits on cloud gaming for subscribers. These moves reflect tighter fiscal discipline and a reevaluation of subscription economics.
Sharma’s messaging emphasizes disruption for the industry, a departure from the previous era of Xbox leadership. Her background includes serving as president of Microsoft’s CoreAI division and chief operating officer at Instacart, without prior video game industry experience.
The division recently confirmed a partnership with Kojima Productions to publish “Physint,” described as a spiritual successor to Metal Gear Solid. This agreement was structured “substantially below what Xbox would typically spend to develop a premium game” and includes TV and film rights to the “Physint” intellectual property.
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.” This confirms a long-term commitment to the gaming segment despite the ongoing overhaul.
Hundreds of additional layoffs are still planned across the company. The impending launch of Project Helix, the next-generation Xbox console, also factors into the division’s future plans and capital allocation strategies.
The remaining studios under the Xbox Game Studios umbrella include The Coalition, known for Gears of War; Playground Games, which develops Fable and Forza; Mojang, the creator of Minecraft; InXile Entertainment, behind Clockwork Revolution; and what remains of Halo Studios.
