Xbox to change hands. Analyst explains what is happening at Microsoft

Former SuperData founder Joost van Dreunen is certain that Microsoft is closer than ever to selling Xbox.

Microsoft could sell its Xbox gaming division amid soaring costs of artificial intelligence development, with a potential deal estimated at $100–150 billion.

This conclusion was reached by Joost van Dreunen, former founder of SuperData Research and NYU Stern professor. In his opinion, Microsoft is now closer to selling Xbox than ever before. The analyst links the potential decision to political changes in the US: following the election, Democrats gained control of both chambers of Congress, while discontent over data center construction continues to grow. Restrictions on such projects have been considered in more than 40 cities and counties, with at least 10 communities already having introduced bans or additional measures.

Microsoft is investing enormous funds into artificial intelligence and the necessary infrastructure. If the authorities make the construction of data centers more difficult and revoke tax incentives, the corporation's expenses will climb. Against this backdrop, Xbox—with its falling revenues, studio closures, and layoffs—could turn out to be an asset that management decides to abandon.

A few weeks ago, the potential value of the division was estimated at $100–150 billion. Microsoft dismissed the sale rumors back then. Van Dreunen also believes that the creation of the XP division to develop gaming franchises across films and TV series could boost the appeal of the deal.