Xbox Buyout Worth Up to $150 Billion Considered by Investors

A group of private equity firms reportedly considered acquiring Microsoft's Xbox gaming division in a potential deal valued between $100 billion and $150 billion, according to a new report.

The discussions took place in recent months but never progressed into formal negotiations with Microsoft, suggesting that the proposed acquisition remained an early investment consideration.

According to The Information's original report, the investors explored the possibility of purchasing Xbox as Microsoft continued restructuring its gaming business under CEO Asha Sharma.

The identities of the investment firms involved have not been disclosed, and no formal acquisition offer was submitted to Microsoft.

The report follows growing speculation about Xbox's future within Microsoft. A separate Fortune investigation revealed that senior executives had previously examined several possibilities, including selling the gaming division, bringing in outside investors, or separating Xbox into a different corporate structure.

Microsoft's gaming business generated approximately $21.8 billion in revenue during its latest fiscal year, representing a 7% decline. Its adjusted profitability measure also fell to around 3%.

Despite the reported investor interest, Microsoft has rejected suggestions that an Xbox sale is being pursued.

A company spokesperson told The Information that Xbox is not for sale, while Microsoft executive Judson Althoff separately defended the gaming division's importance to the company's broader business strategy.

Microsoft continues developing its next-generation Xbox Project Helix hardware alongside plans to expand its gaming ecosystem.

For now, the reported $150 billion valuation represents an exploratory estimate rather than an agreed purchase price, and there is no indication that Microsoft has entered negotiations to sell Xbox.