- Private equity firms reportedly valued Xbox above $100 billion during brief acquisition discussions.
- Microsoft is unlikely to be interested in selling the brand, especially after recent investments and shifting strategies.
- The valuation means that Xbox still represents a fraction of the larger Microsoft business.
The Xbox gaming brand has taken a major reputation hit over the years, and its financial condition has not been the best either. Due to poor hardware sales and an inability to compete in the games industry, Xbox has made rapid changes to its business that have created instability within the brand.
However, the gaming division also owns major publishers like Activision Blizzard and Bethesda Softworks. According to a new report, the Xbox brand is easily worth over $100 billion today.
Why it matters: This figure highlights exactly why Microsoft has yet to give up on the brand despite its many setbacks and hurdles.
Private equity firms reportedly looked into acquiring Xbox, with Microsoft’s gaming division being valued at over $100 billion during those discussions, according to The Information.
The discussions were short-lived, but they concluded that the brand was worth up to $150 billion. Of course, the report does not reveal the exact identities of the parties involved in these discussions.
Interestingly, Activision Blizzard alone likely accounts for a large chunk of this figure, since Microsoft purchased the company for nearly $70 billion back in 2023. For context, Microsoft is estimated to have a total market cap of around $4 trillion. Xbox is, therefore, still a very small part of its overall business.
Unlike the recent EA deal, Microsoft is unlikely to let go of Xbox, especially after investing so much money and effort into the business. Moving forward, CEO Asha Sharma has plans to completely revamp Xbox in 2027, starting with new hardware releases like an upcoming handheld and Project Helix.
What do you make of Xbox’s valuation at $100-150 billion? Let’s discuss below.
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Sajjad Hussain is the Founder and Editor-in-Chief of Tech4Gamers.com. Apart from the Tech and Gaming scene, Sajjad is a Seasonal banker who has delivered multi-million dollar projects as an IT Project Manager and works as a freelancer to provide professional services to corporate giants and emerging startups in the IT space.
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