Xbox CEO Rules Out Divestiture, Pledges Long-Term Commitment Within Microsoft Structure

Xbox CEO Asha Sharma told the New York Times that the company is not for sale and will pursue whatever strategies are necessary to ensure its success while remaining part of Microsoft. Her statement comes following substantial workforce reductions, with 1,600 employees cut in July 2026 and an additional 268 laid off in September. Sharma indicated that Xbox will evaluate partnerships and operating models while maintaining a long-term perspective on its relationship with its parent company.

Xbox has experienced significant organizational upheaval over recent months, with nearly 1,900 employees removed from the company's payroll across two separate reduction events. The restructuring also involved divesting four studio acquisitions, fundamentally altering Xbox's portfolio and operational scale. Despite these substantial changes, leadership has reaffirmed commitment to the Microsoft parent company, signaling that the division will pursue strategic adjustments to its business model and partnership approach rather than seeking independence.

The company's recent acquisition of development partnership with renowned designer Hideo Kojima represents a strategic pivot toward external collaborations. This move occurred after Sony's own negotiations with Kojima Productions dissolved, positioning Xbox to benefit from high-profile creative talent. CEO Sharma's emphasis on coexistence between competition and collaboration suggests Xbox intends to maintain industry relationships across traditional rival companies while pursuing its recovery strategy.