Xbox denies sale rumors and confirms restructuring with 3,200 jobs
Asha Sharma says Xbox is not for sale as Microsoft looks at partnerships and a new operating model, while sources report 3,200 layoffs.
- Sharma says Microsoft is looking at “the right partnerships” and “the right operating model” to better position Xbox for success.
- At the same time, sources report an Xbox restructuring that would cut around 3,200 jobs before next summer.
What happened
GameSpot and other outlets report that Asha Sharma denied the sale rumors surrounding Xbox in a conversation with The New York Times. In the quoted passage, she says Xbox is “not for sale” and that Microsoft will look at the right partnerships, the right operating model, and anything else needed to set the division up for success.
That denial comes alongside broader reporting about an internal restructuring at Xbox. Eurogamer describes the situation as a “reset” and reports that a total of 3,200 jobs could be cut before next summer. In the available coverage, the move is framed as a reorganization of the gaming division, not a sale process.
The same cluster of reports also mentions studio changes. Double Fine, Compulsion Games and Undead Labs are said to have become independent, while the status of Ninja Theory and Arkane remains unclear. Other names, including Activision, Rare, World’s Edge and Obsidian Entertainment, appear in the reporting, but are not confirmed by a separate Microsoft statement in the sources provided.
Timeline
earlier this month: GameSpot publishes reporting in which Asha Sharma denies the sale rumors around Xbox.
earlier this month: Sharma says Microsoft will look at partnerships and the right operating model, according to that reporting.
earlier this month: the GameSpot video embed repeats that Xbox is “not for sale” and ties that to comments about success, partnerships and operating model.
2026-09-27: Eurogamer publishes reporting describing the Xbox restructuring as a “reset,” with 3,200 planned layoffs.
2026-09-27: the same report says Double Fine, Compulsion Games and Undead Labs have become independent studios.
2026-09-28: follow-up reporting continues to track the impact of the restructuring on Xbox studios, including the unclear status of Ninja Theory and Arkane.
before next summer: according to the reporting, the planned workforce reductions are expected to be completed.
Background
GameSpot says analysts had previously speculated that Microsoft could fully spin off Xbox. The same context also mentions a 3% margin, but that financial detail cannot be traced to a primary source in the information provided and remains unconfirmed.
The included GameSpot video supports only the core quote that Xbox is “not for sale.” Its description says Sharma made the comments to The New York Times, adding that Microsoft is looking at the right partnerships, the right operating model and anything needed to achieve success.
The available sources therefore point to two parallel threads: a denial of a sale and a report of an internal restructuring. The exact scale of the layoffs and the final status of individual studios remain partly unconfirmed in the material provided.
Related GAME-scanner articles
- Shawn Layden calls Xbox a ‘Dreamcast moment’ and urges Microsoft to choose
- Microsoft’s Xbox layoffs reportedly hit Age of Empires studio World’s Edge
Sources
- GameSpot: “Xbox CEO Insists It’s Not For Sale Amid Studio Closures, Layoffs”
- Eurogamer: “Xbox not for sale, CEO Asha Sharma console…”
- IGN: “Xbox is not for sale: Asha Sharma denies reports that Microsoft is considering selling its gaming business”