Private equity firms explored acquiring Xbox for up to $150 billion

Private equity companies have expressed interest in purchasing Microsoft's Xbox unit, which could have profound implications on the gaming console industry. This potential sale represents a dramatic change for a gaming system that has been a staple of Microsoft's for many years. Conversations, should they occur, would reportedly value the Xbox unit at up to $150 billion.

Exploratory talks value Xbox at $150 billion despite CEO denial and revenue decline

Multiple private equity companies are reportedly interested in purchasing Microsoft's gaming unit as its own entity. This is in direct contrast to what Xbox leaders have said that the unit is not for sale. The buyout would essentially carve the Xbox unit out of Microsoft's cloud and software business.

Microsoft's FY2026 financial statements show that Xbox brought in $21.79 billion in revenue, a 7% year-over-year decrease. Content and service revenue for the unit fell 5% year-over-year, while hardware revenue plummeted 29% year-over-year. This reveals some of the financial challenges with the Xbox unit.

These are preliminary discussions, meaning there is not yet an offer on the table or an accepted one. Earlier, Xbox CEO Asha Sharma said that the unit is not for sale, suggesting there might be some pushback within Microsoft on this front. It's unclear where this leads as Microsoft considers its options for the gaming unit.

Source: NotebookCheck