Microsoft is not selling Xbox.

That is the message from Xbox CEO Asha Sharma, who has directly rejected recent reports and speculation that Microsoft could sell, spin off, or otherwise separate its gaming division.

The statement comes at a particularly important moment for Xbox, as Microsoft continues a major restructuring involving layoffs, studio changes and a new approach to its gaming business.

Xbox Is Not for Sale

In a recent interview with The New York Times, Asha Sharma was asked about the rumors surrounding Microsoft’s plans for Xbox.

Her response was direct: Xbox is not for sale.

Sharma also said Microsoft would continue looking at partnerships, operating models and other changes necessary to put the gaming division on a path toward long-term success.

That statement effectively pushes back against months of speculation surrounding the future of Microsoft’s gaming business.

However, it does not mean that Xbox will remain unchanged.

In fact, the company is currently going through one of the biggest restructurings in its history.

Why Did People Think Xbox Could Be Sold?

The rumors did not appear out of nowhere.

Earlier reports suggested that Microsoft had considered different ways to restructure its gaming division, including potentially turning Xbox into a wholly owned subsidiary.

Such a structure could theoretically make it easier to create partnerships or even pursue a future sale, which helped fuel speculation across the gaming industry.

However, there was never an official announcement that Microsoft had decided to sell Xbox.

Sharma’s latest comments provide the clearest response yet from Microsoft’s gaming leadership.

Microsoft Is Still Restructuring Xbox

Although Xbox is not being sold, Microsoft is making major changes.

In September, Microsoft announced another 268 job cuts across Halo Studios, other first-party studios and Xbox Game Studios management.

The company said these changes were part of the broader Xbox reset announced earlier in 2026.

Microsoft is also reorganizing how its studios operate.

Activision is expanding its responsibilities to include studios and franchises such as Halo, World’s Edge and Rare, while Bethesda is taking responsibility for Obsidian.

Playground Games and Turn 10 are also being brought together around the Forza and Fable franchises.

These changes show that Microsoft is not abandoning gaming. Instead, the company is trying to make its gaming operations more streamlined and focused.

Halo Is Moving Under Activision

One of the most surprising parts of the restructuring is the change involving Halo.

Microsoft announced that Activision will take on development responsibilities for the next Halo title, with a new team being created specifically for the project.

Halo Studios will continue supporting the existing Halo community and games already on the market.

For fans, this represents a major change for one of Xbox’s most important franchises.

Halo has historically been closely associated with Microsoft’s internal Xbox studios, making the move particularly significant.

What Does This Mean for Xbox Players?

For players, the biggest takeaway is that Microsoft still intends to remain in gaming.

The company is changing how it operates, but there is no indication from Sharma’s statement that Xbox is preparing to leave the industry.

Instead, Microsoft appears to be focusing on fewer business units, stronger franchises and partnerships that can help its games reach a wider audience.

The company has also emphasized a long-term approach to the future of Xbox.

That could mean more changes to how Xbox games are developed, published and distributed.

Xbox’s Future Is Still Changing

Even though the sale rumors have been denied, Xbox is clearly entering a different era.

The company has gone through substantial layoffs, studio divestitures and internal reorganizations during 2026.

Some studios have returned to independent management, while others are being reorganized under larger groups.

Microsoft has described these changes as part of a broader reset designed to improve the efficiency and long-term sustainability of Xbox.

That makes the future of Xbox difficult to predict, even without a potential sale.

What Happens Next?

Microsoft’s immediate focus appears to be rebuilding its gaming operation around its biggest franchises.

The company is continuing development and publishing across major properties while reorganizing the teams responsible for them.

The next few years could therefore be extremely important for Xbox.

Rather than disappearing from the gaming industry, Microsoft appears to be attempting to create a different version of Xbox — one with fewer layers of management, stronger partnerships and a greater focus on its most important franchises.

Final Thoughts

The Xbox sale rumors have finally received a clear response from Microsoft’s gaming leadership.

Xbox is not for sale, according to CEO Asha Sharma.

At the same time, Microsoft is not simply maintaining the status quo.

The company is cutting jobs, reorganizing studios and changing how major franchises are managed as part of a massive reset.

For Xbox players, that means the brand is staying — but the Xbox they know today could look very different in the years ahead.

The important question is no longer whether Microsoft is selling Xbox.

For now, it isn’t.

The bigger question is what Xbox will become after the reset is complete.