Xbox CEO Asha Sharma Says Division Is Not for Sale
The public denial arrives as Xbox is absorbing roughly 3,200 layoffs this fiscal year and, per people familiar with the PHYSINT deal, has agreed to fund that title well below its normal major-game budget, so the sale question is being answered while the spending cuts are still in motion.
Key Facts
- Asha Sharma became CEO of Xbox in February 2026 after Phil Spencer stepped down.
- Xbox announced layoffs of approximately 1,600 people in July and said it would cut roughly 3,200 people this fiscal year.
- Sharma told The New York Times in an interview published September 30 that "Xbox is not for sale."
- Kojima Productions said on September 20 that development of PHYSINT is progressing smoothly with Xbox and that its relationship with PlayStation remains strong.
Reporting from 4 sources: Automaton, GIGAZINE, GameBusiness.jp, Game Spark.
Asha Sharma, CEO of Xbox, told The New York Times in an interview published September 30 that the division will not be sold, directly addressing rumors that followed the company's large-scale reorganization. Sharma took over the gaming division in February 2026 after Phil Spencer stepped down. Under the "Xbox Reset," the company announced layoffs of about 1,600 people in July and said it would cut roughly 3,200 people this fiscal year. She said Xbox will proceed from a long-term perspective and will consider the right partners and operating model. Sharma also addressed the partnership with Kojima Productions on the new action espionage title PHYSINT, saying she is pleased Hideo Kojima chose to work with Xbox. She said the cooperative relationship with Sony will continue and that competition and collaboration can coexist.
"Xbox is not for sale. We will do whatever is necessary to lead the business to success," Sharma told The New York Times. She pushed back against reading the "Xbox Reset" as a withdrawal from Microsoft's gaming business, saying, "Xbox will walk a long road together with Microsoft. We intend to approach this from a long-term perspective."
On PHYSINT, the deal is not an ordinary publishing contract. The agreement came in "significantly below the amount Xbox normally invests in developing major games," and it carries the rights to produce a TV show and a film based on the title. The project had been with Sony Interactive Entertainment until that partnership dissolved in September 2026.
Sharma also said the wider industry needs structural change, telling the paper, "I think this industry will need to fundamentally change its existing structures."
Kojima Productions answered the speculation on September 20, saying the reporting behind it was not based on official or documented sources. The studio said it is healthy and profitable, that PHYSINT development is progressing smoothly with Xbox, and that its relationship with PlayStation remains strong.
Synthesized by Yomimono from the 4 cited sources below, including Japanese-language reporting where cited, then editorially reviewed before publishing.