Microsoft may consider selling Xbox after revenue declines
Microsoft may consider selling Xbox after revenue declines
Updated at: August 3, 2026 at 03:15 AM
As of August 2026, Microsoft's Xbox division faces a challenging future.
Following four consecutive quarters of revenue decline and a 7% drop for the 2026 fiscal year, the company is re-evaluating its gaming strategy.
Under new CEO Asha Sharma, the division has undergone major restructuring, including 3,200 planned layoffs and the divestment of various studios.
Internal reports suggest Microsoft is exploring several options for the division, such as spinning it off as a separate public company or restructuring it into a subsidiary to make a future sale more feasible.
While industry experts argue that a full acquisition is currently unlikely due to the massive cost of such a deal, there is growing sentiment that the gaming business has become a distraction.
As Microsoft shifts its focus toward high-growth sectors like Cloud and AI, many wonder if Xbox will remain a core part of the company or if it will eventually be sold to sharpen Microsoft's overall focus.
