Multiple private equity firms recently explored a buyout of Microsoft’s Xbox gaming division at a valuation reaching as high as $150 billion, according to a report from The Information. The discussions remained purely exploratory, did not produce an official bid, and concluded without advancing to formal talks with Microsoft.
The proposed buyout valuation floated among the unidentified investment firms ranged from $100 billion to $150 billion. That upper threshold nearly triples the $55 billion purchase price paid in August 2026 to acquire Electronic Arts by a consortium consisting of Silver Lake, Affinity Partners, and Saudi Arabia’s Public Investment Fund. Any deal involving Xbox would encompass a sprawling portfolio that includes hardware operations, the Game Pass subscription platform, and major gaming properties like Minecraft, Call of Duty, Diablo, and The Elder Scrolls, though it remains undetermined which assets were factored into the private equity valuations.
The revelation surfaces against a backdrop of financial contractions across Microsoft’s gaming unit. Filings for fiscal year 2026 showed Xbox revenue slid 7% year-over-year to $21.79 billion, dragged down by a 29% collapse in hardware sales alongside a 5% drop across content and services. The division is also facing continued restructuring, with three additional rounds of layoffs scheduled under its current management.
Company leadership has consistently pushed back against sale rumors. Xbox CEO Asha Sharma explicitly told The New York Times in September that the division was not for sale, while noting Microsoft remains open to operational arrangements and alternative partnerships. Furthermore, Microsoft commercial chief Judson Althoff dismissed internal employee speculation reported by Fortune regarding a spin-off or sale, stating the company would not install top executive talent to run a business it planned to divest.
Source: Notebookcheck
