If Microsoft sold off Xbox, who would even buy it?
This week, Microsoft took a huge ax to its Xbox business. The company announced that it would be laying off 1,600 workers now, 1,600 more over the next fiscal year, and that it would be shedding four studios. Xbox CEO Asha Sharma hasn’t been shy about why she’s making such dramatic cuts, saying in a memo that the business is “not healthy.” Speaking to Fortune, she said that “we simply spread ourselves too thin.”
Given the scale of the changes and Xbox’s currently vague strategy of focusing only on big games, it’s unclear just what the future of the platform is. As Microsoft invests much of its resources into everything AI, a struggling consumer business with a difficult future doesn’t necessarily seem like a good fit for the company. Which opens up the possibility that Microsoft could be preparing to eventually exit the gaming business altogether by selling...
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