Xbox Will Get a New Owner, Analyst Explains What’s Happening at Microsoft

Microsoft is closer than ever to selling Xbox, according to former SuperData founder Joost van Dreunen.

Microsoft could sell its Xbox gaming division amid rising costs to develop artificial intelligence. A potential deal could be valued at $100 billion to $150 billion.

That is the conclusion of Joost van Dreunen, former founder of SuperData Research and a professor at NYU Stern. In his view, Microsoft is now closer to selling Xbox than ever before. The analyst links a possible decision to political changes in the United States: after the elections, Democrats gained control of both chambers of Congress, while opposition to data center construction has grown. More than 40 cities and counties have considered restrictions on such projects, and at least 10 communities have already introduced bans or additional measures.

Microsoft is investing heavily in artificial intelligence and the infrastructure needed to support it. If authorities make data center construction more difficult and eliminate tax incentives, the company’s costs will rise. Against that backdrop, Xbox—with declining revenue, studio closures, and layoffs—could become an asset company leaders decide to offload.

Several weeks ago, the division’s potential value was estimated at $100 billion to $150 billion. Microsoft denied rumors of a sale at the time. Van Dreunen also believes that creating the XP division to develop gaming brands for film and television could make a deal more appealing.