Overview
- Sharma, who spoke to The New York Times on Wednesday, said plainly that "Xbox is not for sale" and pledged to pursue partnerships and operating changes to set the business up for success.
- Microsoft launched a major Xbox reset in June and plans to cut roughly 3,200 roles across the 2027 fiscal year as it reduces management layers and closes or reshapes teams.
- As part of the reorganization, Microsoft has reassigned key franchises and studios, including moving Halo under Activision and shifting Obsidian under Bethesda, while some smaller studios were divested.
- Reporting from The Information says senior executives including Satya Nadella and Amy Hood once discussed spinning out or selling Xbox, though Nadella has publicly praised Sharma’s streamlining as the current course.
- Industry observers warn the overhaul risks talent loss, slower game output and cultural disruption, and the outcome to watch next is whether the reset restores profitability and speeds key releases.