Xbox is not for sale: what Asha Sharma did and didn't deny

Xbox is not for sale, according to the person who runs it. Asha Sharma, Microsoft's gaming CEO, gave that answer in a New York Times profile published on September 30, 2026, after months of speculation that Microsoft was preparing its struggling games business for an exit. Her denial covers a sale. It doesn't clearly cover the other option reported in June: turning Xbox into a separate subsidiary or a joint venture. Here's exactly what she said, what was reported, and where Xbox's cuts stand.

Key takeaways

• Sharma told The New York Times: "Xbox is not for sale." That's a direct denial of a sale, and it's the only thing she ruled out in the quotes reported so far.
• In the same answer she said Xbox will look at "the right partnerships, the right operating model and everything needed." That leaves a new structure or a partner deal open.
• In June, The Information reported that Microsoft had considered spinning Xbox out, restructuring it as a wholly owned subsidiary (which could make a sale easier) or forming a joint venture, while having no imminent plans to do so.
• Sharma's July plan cuts about 3,200 Xbox jobs over Microsoft's fiscal 2027, about 1,600 of them on July 6. On September 22, Microsoft said it is "roughly three-quarters of the way through" that restructuring, a figure that includes studio sales.

What Sharma said about Xbox not being for sale

The quotes come from a New York Times profile of Sharma, who took over from Phil Spencer in February 2026. The article is behind a paywall, so we're relying on how outlets that read it quoted her. According to Kotaku, she 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 also said, per Kotaku, "We've got a long way to go with Microsoft, and we're going to take the long-term view." Insider Gaming notes that the Times reporter, Zachary Small, described her answer as a "bob and weave."

A sale versus a spin-off

A sale and an Xbox spin-off are two different things, and the difference is the story. A sale means Microsoft hands Xbox to a new owner. A spin-off or subsidiary means Microsoft keeps it, at least at first, but gives it its own corporate shell.

That second path is what The Information reported in June. Citing three people with direct knowledge of the discussions, it said Microsoft had considered spinning Xbox out or restructuring it as a wholly owned subsidiary, "which could make it easier to sell," or creating a joint venture with other partners, as DualShockers summarized the paywalled report. The same report said Microsoft had no imminent plans to restructure.

So Sharma's "not for sale" answers the sale question. Her "right partnerships" and "right operating model" line is at least compatible with a subsidiary or a joint venture, and in the quotes published so far she doesn't address either one by name. That reading is ours; Microsoft hasn't said what those words mean.

Where the Xbox layoffs stand now

The denial lands in the middle of what Microsoft itself frames as a reset. In her July 6 memo, "Resetting XBOX", Sharma announced about 3,200 job cuts across Microsoft's fiscal 2027, which ends on June 30, 2027, with about 1,600 of them that day. "Our business today is not healthy," she wrote, adding that Xbox runs at margins "3-10x lower than comparable platform and publishing businesses."

On September 22, content chief Matt Booty's memo, "Continuing Our Reset", cut 268 more roles, moved the next Halo to a new Activision team and put Obsidian under Bethesda. We covered that round in detail in our piece on Halo, Ninja Theory and the September Xbox layoffs. Booty wrote that the actions since July, "inclusive of the studio divestitures," bring Xbox "roughly three-quarters of the way through" the restructuring.

That three-quarters figure is Microsoft's, and it measures the whole restructuring, studio sales included, not a head count. Microsoft hasn't published a running total of jobs cut.

Why the sale question won't go away

The restructuring itself feeds the speculation. Kotaku's roundup of analysts on September 23 included NYU Stern's Joost van Dreunen calling it a "reverse acquisition in slow motion," with the publishers Xbox bought, like Activision, now absorbing the studios Xbox built. Kotaku also framed Sharma's denial against concerns that Microsoft is streamlining its gaming business ahead of a spin-off.

None of that is evidence of a deal, or of an Xbox spin-off. But "Xbox not for sale" doesn't close the door on a new structure either, so expect the question to come back.

What it means for Xbox players

Whatever you make of "Xbox not for sale," nothing about your games or your account changes for now. Xbox is still shipping console features: Disc to Digital reached every player on September 29, and Mythic Achievements went into Insider testing the same day. Nothing Microsoft has announced changes Game Pass, your game library or your console.

What happens next

• October 6: Booty's memo says Xbox holds an all-staff town hall to "reflect on our progress."
• Through June 30, 2027: the rest of the roughly 3,200 cuts Sharma announced for fiscal 2027.
• Open question: whether "the right operating model" means a subsidiary, a joint venture or neither. Microsoft hasn't said.

Bottom line

Xbox is not for sale, and Sharma said it plainly. What she didn't say, at least in the quotes reported so far, is that Xbox will stay structured the way it is today. The Information's June report was about a spin-off, a subsidiary or a joint venture, and her talk of "the right operating model" leaves all three open. Meanwhile, Microsoft says its reset is about three-quarters done, with more cuts due before June 2027.

FAQ

Is Microsoft selling Xbox?

Not according to its CEO. Asha Sharma told The New York Times on September 30, 2026, that "Xbox is not for sale." No sale has been announced or reported as under way.

Could Xbox become a separate company?

It's possible, but nothing has been announced. The Information reported in June that Microsoft had considered spinning Xbox out, making it a wholly owned subsidiary or forming a joint venture, with no imminent plans. Sharma's reported comments rule out a sale but don't address those options by name.

How many Xbox jobs have been cut in 2026?

Sharma's July plan calls for about 3,200 cuts over Microsoft's fiscal 2027, starting with about 1,600 on July 6, and Microsoft cut 268 more roles on September 22. Microsoft says it's roughly three-quarters of the way through the restructuring but hasn't published an exact total.