Private equity investors reportedly explored buying Xbox for up to $150 billion

Microsoft’s Xbox gaming division reportedly attracted interest from a group of private equity firms that considered acquiring the business for as much as $150 billion. However, the discussions were short-lived and never progressed to formal negotiations with Microsoft. The revelation comes amid growing speculation about the future of Xbox, which has undergone a significant restructuring under its new leadership, with three more rounds of layoffs scheduled.

According to a new report from The Information, citing people familiar with the matter, several private equity firms explored a potential acquisition of Microsoft’s gaming business in recent months. The proposed valuation ranged between $100 billion and $150 billion, although the discussions remained exploratory and did not result in an offer. The identities of the interested parties have not been disclosed.

For perspective, the upper end of the proposed Xbox valuation is nearly three times the $55 billion paid to acquire Electronic Arts. That transaction, involving Saudi Arabia’s Public Investment Fund, Silver Lake and Affinity Partners, was completed in August 2026. An Xbox acquisition would be considerably more complicated, given Microsoft’s ownership of major franchises such as Call of Duty, Minecraft, Diablo and The Elder Scrolls, alongside its console business and Game Pass subscription service. It remains unclear which assets would have been included in the proposed valuation.

Interestingly, the report comes just weeks after Xbox CEO Asha Sharma categorically dismissed the possibility of Microsoft selling its gaming division. Speaking to The New York Times in September, Sharma explicitly stated that Xbox was not for sale. However, she acknowledged that the company would consider alternative partnerships and operating arrangements to improve its performance.

A separate Fortune investigation, published on the same day as The Information’s report, offers additional context. Several current and former Microsoft employees reportedly believe Xbox is being prepared for a potential sale, spin-off or outside investment. Some were also aware of an internal presentation examining such possibilities. However, Microsoft commercial chief Judson Althoff pushed back against the speculation, arguing that the company would not have appointed one of its best executives to lead a business it intended to sell.

Microsoft’s gaming division has struggled financially in recent years, particularly on the hardware side. According to the company’s FY2026 financial statements, Xbox generated $21.79 billion in revenue, representing a 7% year-on-year decline. Xbox hardware revenue fell by a more substantial 29%, while content and services revenue declined by 5%.

For now, there is no indication that Microsoft has entertained an acquisition proposal. Nevertheless, the reported interest suggests that outside investors see substantial value in Xbox despite its recent financial troubles. Whether Microsoft’s ongoing restructuring eventually leads to a different ownership arrangement remains to be seen.

Anil Ganti - Senior Tech Writer - 3126 articles published on Notebookcheck since 2019

I've been an avid PC gamer since the age of 8. My passion for gaming eventually pushed me towards general tech, and I got my first writing gig at the age of 19. I have a degree in mechanical engineering and have worked in the manufacturing industry and a few other publications like Wccftech before joining Notebookcheck in November 2019. I cover a variety of topics including smartphones, gaming, and computer hardware.