Microsoft could sell Xbox following US Election results - Report
(Courtesy : Microsoft XBOX)
Analyst predicts AI push could reshape the gaming division
Microsoft’s Xbox gaming division appears to face a very uncertain future. According to Industry analyst Van Dreunen, in his Substack post, the company may eventually consider selling the gaming business.
This speculation follows the recent 2026 US midterm election results, in which Democrats regained control of both the House and Senate.
Because of this, Microsoft could face a huge challenge in its aggressive AI and data center expansion plans. Previously, Asha Sharma stated that the gaming division is not for sale; however, the company’s long-term priorities might change.
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Analyst believes Microsoft’s AI ambitions could reshape Xbox’s future
Joost van Dreunen has suggested that Microsoft’s recent expanding investment in artificial intelligence may put a huge pressure on its gaming division.
Microsoft’s artificial intelligence infrastructure growth may be stunted by growing resistance and backlash in various communities in the United States to new data centers.
With AI being one of Microsoft’s primary strategic focuses, the company has the potential to allocate more funds towards the AI segment in the days to come.
Xbox revenue trails
In the report, there is also a mention of the recent financial performance. During the previous quarter of 2026, Xbox generated approximately $5.4 billion in revenue. This is a slight year-over-year decline.
In comparison to the gaming division, Microsoft’s Search and Advertising division has stronger growth during the same period.
Due to this, the company has increased its emphasis on cloud services and AI-powered businesses. Recently, we have also seen major restructuring across Xbox, where thousands of jobs were cut as part of its broader strategies.
Since then, the company has embarked on various initiatives, including Xbox XP, which explores how to expand gaming franchises into movies and TV shows, and Xbox Labs, an AI-powered research arm for next-gen game development.
Also Read: Xbox Series X/S & ROG Xbox Ally AMD FSR 4 Support is now available
Conclusion
So, is Microsoft really selling XBOX? For now, there is no official announcement or indication of this.
The entire discussion and report is based on an analyst’s opinion rather than a confirmed statement from Microsoft.
While for the moment the gaming division is at the centre of Microsoft’s key entertainment ventures, the discussion raises the issue of how quickly evolving technology investments might affect the future of the gaming industry.
Is Microsoft selling Xbox?
No. Microsoft has not announced any plans to sell. The claim comes from gaming industry analyst Joost van Dreunen and remains speculation.
Why does the analyst believe Microsoft could sell the gaming division?
The analyst believes Microsoft’s growing investment in AI and data centers could encourage the company to prioritize those businesses over gaming if additional funding is needed.
Did Asha Sharma say that the gaming division is for sale?
No. Asha Sharma has publicly stated that the gaming division is not for sale.
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