Analyst: Microsoft May Sell Xbox Unit After 2026 Vote

Joost van Dreunen, founder of SuperData Research and a professor at NYU Stern, wrote that Microsoft is closer than ever to selling its Xbox division if political and regulatory changes raise the cost of its AI investments.

Van Dreunen published the analysis on Substack under the headline "The election that could break up Xbox."

He wrote, "The recent election, rather than fundamentally transforming the games industry economy, may accelerate trends that have already reshaped the industry: from Microsoft's AI ambitions to rising console prices and increased oversight of online platforms."

Van Dreunen said a Democratic victory and control of both houses of Congress could lead to tougher limits on data center construction. He said such restrictions would likely increase the cost of AI infrastructure for companies including Microsoft.

He argued that, in that scenario, Microsoft could view the sale of Xbox as an option to free capital for large AI investments. He framed this as an economic analysis, not evidence of active sale negotiations.

Van Dreunen highlighted recent Microsoft financials showing Xbox revenue fell about 2 percent in the quarter ending September 2026, while Xbox hardware sales declined 14 percent.

He also noted Microsoft’s creation of a new XP unit inside Xbox, intended to expand the brand into film and television, could make the division more attractive to potential buyers.

Earlier reports have said some private equity firms examined a possible purchase of Microsoft’s gaming unit at an estimated value between $100 billion and $150 billion.

Xbox chief executive Asha Sharma denied sale rumors in a New York Times interview on 30 September 2026 (8 Mehr 1405). She said, "Xbox is not for sale. We will do whatever is necessary for the company's success and will evaluate the right partnerships, operating model and actions to achieve that goal."

Microsoft has not announced any official plans to sell or divest Xbox. Van Dreunen’s piece remains an analyst’s assessment of potential corporate priorities under changed political and regulatory conditions.