Is Microsoft Actually SELLING Xbox?
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Published Jun 12, 2026 • Duration: 08:07
Description
Is Microsoft actually preparing to sell or spin off Xbox? A brutal internal memo from new Xbox CEO Asha Sharma has just leaked, exposing a massive financial crisis behind the scenes—including collapsing profit margins, a 5x spike in hardware costs, and impending layoffs. Here is what this means for the future of the brand.
The honeymoon phase for new Xbox CEO Asha Sharma is officially over. A blunt company-wide memo titled "Next 100 Days: XBOX Reset" has gone public, and the details are staggering. Despite Microsoft spending over $20 Billion on content and hardware subsidies over the last five years (excluding the massive Activision Blizzard merger), annual gaming revenue has actually dropped by nearly half a billion dollars.
Even worse, Sharma revealed that Xbox is operating at a razor-thin 3% accountability margin and is trapped in a massive, AI-driven hardware component crisis. With storage and NAND costs projected to skyrocket 5x by the 2027 holiday season, Microsoft is currently unable to make consoles sustainably.
Now, explosive new reporting from The Information reveals that Satya Nadella and CFO Amy Hood are looking at radical structural changes if this immediate reset fails... including spinning Xbox off into a wholly-owned subsidiary, forming a joint venture, or selling the brand entirely.
What do you think? Is this the beginning of the end for Xbox hardware, or can Asha Sharma steer the ship around? Let's break down the corporate strategy, the canceled PS5 ports (like Gears of War: E-Day), and what happens next.
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#Xbox #Microsoft #GamingNews #AshaSharma #XboxReset #GamingIndustry #gaming #reforgegaming
The honeymoon phase for new Xbox CEO Asha Sharma is officially over. A blunt company-wide memo titled "Next 100 Days: XBOX Reset" has gone public, and the details are staggering. Despite Microsoft spending over $20 Billion on content and hardware subsidies over the last five years (excluding the massive Activision Blizzard merger), annual gaming revenue has actually dropped by nearly half a billion dollars.
Even worse, Sharma revealed that Xbox is operating at a razor-thin 3% accountability margin and is trapped in a massive, AI-driven hardware component crisis. With storage and NAND costs projected to skyrocket 5x by the 2027 holiday season, Microsoft is currently unable to make consoles sustainably.
Now, explosive new reporting from The Information reveals that Satya Nadella and CFO Amy Hood are looking at radical structural changes if this immediate reset fails... including spinning Xbox off into a wholly-owned subsidiary, forming a joint venture, or selling the brand entirely.
What do you think? Is this the beginning of the end for Xbox hardware, or can Asha Sharma steer the ship around? Let's break down the corporate strategy, the canceled PS5 ports (like Gears of War: E-Day), and what happens next.
🤝 Support & Partnerships
You help power the show! Check out our great sponsors and affiliates:
Reforge Roast (Our Coffee Company!) COFFEE - https://reforgeroast.com/
SPRECHER - https://sprecherbrewery.com/?ref=LONO
GLASSES - Code LONO - https://gameradvantage.com/
INTO THE AM - Code LONO - https://intotheam.com/LONO
80STEES - Code LONO - https://www.80stees.com
AMAZON AFFILIATE - https://amzn.to/2YUOXR7
🎲 Reforge Gaming Community
The Reforge Gaming Community is built on unmatched audience interaction. Join our daily Live Video Game Podcast where we break down the biggest news, deliver expert analysis, and discuss your questions in real-time. Drop in, hang out, and drive the conversation!
MEMBERSHIP - https://www.youtube.com/ReforgeGaming/join
DISCORD - https://discord.gg/ReforgeTV
TWITTER - Https://twitter.com/ReforgeGaming
AUDIO - https://open.spotify.com/show/0FFSZQVL0dTcatnQKKOCNL
#Xbox #Microsoft #GamingNews #AshaSharma #XboxReset #GamingIndustry #gaming #reforgegaming