- An industry analyst thinks that Microsoft is now quite close to selling the Xbox division.
- Since Democrats swept the elections, they are stricter about data centers.
- With Microsoft focusing on AI work, operating costs could increase, and Xbox could be the sacrifice.
The reports that Xbox could be sold by Microsoft have been surfacing for quite some time now. Even last month, a private equity firm stated that the brand is still worth $100 billion, but the Xbox execs stated that it is not for sale.
Following the Democrats sweeping Congress, an analyst states that Xbox could be closer than ever to being sold. Democrats aren’t fans of data centers, and Microsoft is pushing for AI, so Xbox could be kind of a sacrifice.
Why it matters: The current Congress is expected to halt new data centers and introduce stricter policies, and with Xbox already dropping revenue and Microsoft focusing on AI, the gaming division could be sold off.
Joost van Dreunen, in a Substack post titled “The election that could break up Xbox”, talks about how Democrats winning the elections could be a massive blow for Microsoft’s gaming division amid its falling profits.
He writes that the newly elected governors will make it harder and more expensive to run AI businesses, and since Xbox revenue has fallen to 5th place in all of Microsoft’s divisions this year, it could be the loose end.
Dreunen continued that the division making a dedicated XP department highlights it could be looking to express itself more of a complete entertainment entity than gaming, which makes it more attractive for potential buyers.
Xbox revenue has been on a decline for years, although this year it was down just 2%. However, Asha Sharma has promised to return the company to its glory days, and while they aren’t there yet, things are progressing.
What are your thoughts on the analyst’s comments that Xbox is now more likely than ever to be sold? Let us know your opinions in the comments or join the discussion at the official Tech4Gamers Forum.
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News Reporter
Abdullah is an avid gamer who primarily plays single-player titles. If you can’t find him anywhere, he’ll probably be at his desk playing The Witcher 3 for the millionth time. When he isn’t playing games, he’s either reading or writing about them.
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