The “Xbox reset” has people wondering whether Microsoft is preparing to exit the video game business, but Xbox CEO Asha Sharma has flatly denied that the gaming division will be put up for sale.
“Xbox is not for sale,” Sharma said to The New York Times. “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.”
Sharma’s comments come in the wake of analysts predicting that Microsoft could sell Xbox off entirely. Compared with Microsoft’s profitable cloud computing and artificial intelligence businesses, Xbox has paled in comparison, and the gamble on Xbox Game Pass hasn’t paid off, despite Microsoft investing tens of billions in acquiring several video game publishers and studios over the years. Xbox’s accountability margins amount to only a 3% profit, a small return on investment for its parent company.
Microsoft CEO Satya Nadella has said that Xbox will have to start pulling its weight under Sharma’s leadership, and the Xbox CEO previously told employees that the Xbox business was not in a healthy state. Nadella has also praised Sharma’s cuts at Xbox, saying they have led to a “streamlining” of the division.
If Sharma is setting Xbox up to generate more profit for Microsoft, then it’s all part of a years-long strategy in the making. Halo is now an Activision project, and is likely several years away as the publisher is currently building a new team to develop the next Master Chief adventure. Meanwhile, two of Blizzard’s biggest upcoming games will arrive at the end of this decade: Diablo 5 is aiming for a 2029 launch, while StarCraft is set for 2030. At the same time, Xbox has also tasked several of its studios with working on its Fallout franchise, with multiple new games in the series in various stages of development.
“We’ve got a long way to go with Microsoft,” Sharma said to the NYT. “And we’re going to take the long-term view.”
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