Xbox was reportedly valued up to $150B as private equity firms explored buying Microsoft’s gaming business

Red Xbox Logo (Image credit: Microsoft)

Rumors that Microsoft was willing to sell off its entire Xbox division have been swirling for a while. While those reports never came to fruition, a new report from The Information reveals that there was indeed interest from private equity firms.

According to the outlet, Xbox was valued between $100 billion and $150 billion. The report does say that the discussions were short-lived and strictly exploratory, with no formal negotiations ever taking place. It remains unclear which specific firms were involved in the talks.

Fortunately for fans, this never happened. It’s hard to imagine private equity firms managing Xbox any better than the disastrous past few years have been. In fact, I'd go as far as to say that Xbox seems to be back on track under CEO Asha Sharma, who recently dispelled concerns about the business shuttering during an interview with Fortune.

I think that we’re going to be an important part of Microsoft for a very long time
Asha Sharma - CEO of XBOX

That comment feels like a direct jab at online folk who have long claimed Microsoft is exiting the gaming space. But I digress.

A $100 Billion Xbox Buyout Would Have Changed Everything

The Xbox 360's infamous Red Ring of Death. — Xbox Red ring of death (Image credit: Jeff the Trojan / Flickr)

A future where Xbox was purchased for over $100 billion would have been a wild timeline. It’s also interesting to compare that valuation to what Microsoft paid for Activision Blizzard King in 2022, which was nearly $70 billion. If you subtract that acquisition cost from the current valuation, it suggests Xbox without Activision is worth somewhere between $30 billion and $80 billion. That is a massive figure, regardless of where on that spectrum you land.

It’s no secret that Xbox has been struggling these past few years. I’m glad Microsoft stuck it out and has seemingly started making positive changes. It really boggles my mind what was going on within the division during the Phil Spencer era. As much as I believe he did amazing work for the brand, the direction Xbox was heading felt like a recipe for disaster.

Let me know your thoughts. Would you have been happier seeing Xbox purchased by a private equity firm, or are you glad Microsoft stuck to its guns and appointed Asha Sharma?

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Adam is a Psychology Master’s graduate passionate about gaming, community building, and digital engagement. A lifelong Xbox fan since 2001, he started with Halo: Combat Evolved and remains an avid achievement hunter. Over the years, he has engaged with several Discord communities, helping them get established and grow. Gaming has always been more than a hobby for Adam—it’s where he’s met many friends, taken on new challenges, and connected with communities that share his passion.