Microsoft Denies $100 Billion Xbox Sale Rumors as Private Equity Firms Evaluate Deal

Multiple private equity firms are looking at Microsoft's Xbox division for an acquisition. This has caused rumors around what will happen to the gaming platform. Microsoft's Xbox business is rumored to be valued between $100 billion and $150 billion.

Microsoft officially refutes acquisition rumors while Xbox revenue declines

This is a lot of assets for anyone to purchase. However, Microsoft has officially refuted the rumors. The company has said Xbox is not for sale. The reason for the statement is to dispel rumors about the future of the gaming division.

Microsoft acquired Activision Blizzard for $75 billion in 2023. This is a large asset that is part of Microsoft's Xbox business. Revenue declined 7% year over year for the fiscal year that ended in June.

Total revenue was $21.8 billion. The operating margin for the business declined to just 3% in the fiscal year that ended in June. It appears Microsoft's Xbox business has some financial issues going on. Revenue declined and the operating margin shrank over the last fiscal year.

The next generation of Xbox consoles are expected to launch in 2028. Microsoft is estimating that the cost to consumers could be in the $1,200-$1,800 range. The reason for this projected increase in price is because of increasing costs for hardware.

The integration of artificial intelligence into hardware is pushing up costs. There are estimated production costs for future consoles that indicate that there will be higher costs to consumers. Consumers need to expect that the next consoles will be more expensive.

A spokesperson from Microsoft said that Xbox is not for sale. No other comments were provided. This is the statement released by Microsoft's spokesperson.

The talks were preliminary by private equity firms. These were not formal discussions with Microsoft. The statement from Microsoft confirms the Xbox division is with Microsoft. Xbox is still an integral part of Microsoft's business operations.