Xbox CEO Denies Sale Amid Mass Layoffs and Service Cuts
Asha Sharma denied reports that Microsoft is selling Xbox while announcing 3,200 layoffs and restricting cloud gaming access for Game Pass subscribers.
Xbox CEO Asha Sharma denied reports that Microsoft is planning to sell or spin off its gaming division, stating in an interview with The New York Times that "Xbox is not for sale." The denial follows reports that Microsoft CEO Satya Nadella and CFO Amy Hood had considered a divestiture or joint venture to remove the high-risk business from the company's books.
Instead of a sale, Sharma is implementing a division reset that includes laying off up to 3,200 employees by June 2027 and restructuring studios. This overhaul moves franchises such as Halo, Sea of Thieves, and Age of Empires under Activision to focus on larger brands and transmedia opportunities. Nadella and Sharma maintain they are taking a long-term view to establish a sustainable business model.
Simultaneously, Microsoft is scaling back Xbox Cloud Gaming services. The company is reducing cloud streaming access for its most expensive Game Pass tier from unlimited to 15 hours per week, with surcharges applied thereafter. Additionally, the Xbox app will lose support for 2020 Samsung Smart TVs starting November 3. These restrictions, along with the earlier removal of the "This Is An Xbox" marketing campaign, signal a shift away from the company's previous goal of making gaming accessible on any device.
