The question of whether Microsoft would ever part ways with Xbox just got a price tag attached to it. According to a new report, a group of private equity firms recently explored buying the gaming division, with a potential valuation ranging from $100 billion to $150 billion.
The report comes from The Information, which published it on Tuesday (October 20th). Citing people familiar with the discussions, the outlet said the firms considered a buyout of Xbox in recent months. Those talks were described as short-lived and exploratory, and they never turned into an actual negotiation with Microsoft.
What The Report Does And Does Not Say
It is important to keep this one in perspective. Based on The Information's reporting, there was no formal bid, no offer on the table and no sign that Microsoft entertained a sale. The firms involved have not been named, and the reporting does not explain why the discussions fizzled out. The details have not been independently confirmed, so the numbers should be treated as reported figures rather than an official valuation.
Even so, the range is eye-catching. Microsoft completed its acquisition of Activision Blizzard in 2023 for roughly $69 billion, which means the top end of the reported valuation is more than double what the company paid for the publisher behind Call of Duty, World of Warcraft and Candy Crush. A deal anywhere in that range would rank among the largest buyouts ever attempted in any industry, let alone gaming.
Xbox CEO Asha Sharma Says Xbox Is Not For Sale
The report lands after months of speculation about the future of the brand. Asha Sharma took over as Xbox CEO in February following Phil Spencer's retirement, and her tenure so far has included thousands of layoffs, studio divestitures, canceled projects and a broad reorganization. Halo has been moved under Activision, and the division dropped the Microsoft Gaming name in favor of simply Xbox.
Sharma has tried to shut down the sale talk directly. Speaking to The New York Times in an interview published last month (September 30th), she said:
"Xbox is not for sale. 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."
She added, "We've got a long way to go with Microsoft, and we're going to take the long-term view."
She struck a similar tone in a Fortune profile published yesterday (October 20th). Asked whether Xbox would still be a Microsoft division two years from now, Sharma replied, "I think that we're going to be an important part of Microsoft for a very long time."
Microsoft Leadership Weighs In
The same Fortune piece also included comments from Judson Althoff, who oversees Microsoft's commercial business and is one of the company's most senior executives. He argued that Xbox matters to Microsoft beyond games, pointing to how its low-latency demands stress-test the company's cloud and how it keeps retail relationships strong.
"Asha is one of the best leaders we have at the whole company. We would not have put her on a business we intend to sell," Althoff said. "There's going to be a ton of speculation about all this. Time will tell."
That said, the Fortune profile also reported that several current and former staff members believe Xbox could be prepared for an eventual sale, spinoff, outside investment or conversion into a subsidiary. Some said they knew of a high-level presentation exploring those scenarios after Sharma took over. The Information had earlier reported that Microsoft had not ruled out restructuring Xbox as a wholly owned subsidiary.
Why Private Equity Interest Matters
None of this means Xbox is changing hands. What the report does show is that outside buyers have at least run the numbers on the business, which is notable given how much the division has been reshaped this year. Xbox is still preparing its next-generation hardware, Project Helix, and Sharma has set a long-term goal of reaching one billion people a day through the Xbox ecosystem.
For now, the official line from the top of Xbox is clear. Whether that line holds as the restructuring continues is the question many fans will be watching closely over the coming months.
Do you think Microsoft will keep Xbox for the long haul, or does this report suggest a sale is more possible than the company admits?
Let us know your thoughts in the comments below.