Xbox CEO Asha Sharma has firmly denied reports that Microsoft is considering selling its gaming division, responding to previous speculation that CEO Satya Nadella and CFO Amy Hood had explored spinning out the business as a separate entity. Instead, both executives have backed Sharma's comprehensive restructuring plan, signalling Microsoft's commitment to gaming as a long-term strategic priority rather than a unit for divestment.

Sharma announced a major Xbox reset in June, which will involve laying off up to 3,200 employees during Microsoft's 2027 financial year. The restructuring includes moving Halo under Activision and relocating other studios including Sea of Thieves and Age of Empires developers, whilst reducing management layers and concentrating on major franchises. Nadella has publicly supported the changes, describing them as necessary "streamlining" to develop a "sustainable business model" for gaming delivery.