A group of private equity firms reportedly conducted their own assessment to acquire the entire Xbox business, estimating the transaction value at $100 billion to $150 billion. A Microsoft spokesperson clearly stated: "Xbox is not for sale."
These discussions are reportedly still in the very early stages among investors and have not yet developed into formal negotiations with Microsoft's management. There are no known written offers, and the identities of interested parties have not been disclosed. Therefore, this does not mean that Microsoft has initiated a process to sell Xbox.
Microsoft has reportedly evaluated various future scenarios for its Xbox business in recent months, including a full sale, bringing in external investors, spinning it off from Microsoft, or restructuring it as a relatively independent subsidiary. Meanwhile, Xbox has undergone several organizational changes, including renaming Microsoft Gaming to Xbox, changing employee email domains, and laying off staff.
In the fiscal year ending June 2026, Xbox's annual revenue fell 7% to $21.8 billion, with adjusted profit margins dropping to 3%. Microsoft executive Judson Althoff emphasized Xbox's strategic value to Azure cloud infrastructure, retail partnerships, and its ability to connect with younger users through Minecraft.