Microsoft CEO insists Xbox is a vital part of the company's core DNA

Reports that they would drop out of the gaming business entirely appears unfounded, for now.
Text: Magnus Groth-Andersen
Published 2026-03-11

Recently, Xbox founder Seamus Blackley stated that the transition to new head of Xbox Asha Sharma felt like a sort of "death knell" for the Xbox brand, suggesting that Sharma is merely there to oversee a phase-out.

However, that is not the impression Microsoft CEO Satya Nadella wishes to reinforce internally. Windows Central has obtained an internal memo distributed by Nadella, in which he makes no secret of how vital Xbox and gaming are to Microsoft:

"We're long on gaming. We'll continue to invest, and we'll always do so. Xbox at its best lifts the entire company."

Sharma herself also shared a message, stating:

"I'm spending a lot of time thinking about how I can empower these worlds, these stories, and these characters. We're getting down to that core, the craft that goes with it, this is the place where we have to get the cultural zeitgeist and then have it manifest in everything that we do."

Exactly what Microsoft's long-term plan for Xbox looks like remains to be seen, but it will be exciting to follow.

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