Xbox Is Closer Than Ever to Being Sold Off by Microsoft After Democrats Swept Congress, According to Gaming Industry Analyst Joost van Dreunen

Following the so-called Blue Wave that swept through the U.S. Capitol as the Democrats gained control of the entire Congress, gaming industry analyst Joost van Dreunen believes that Xbox is closer than ever to being divested by Microsoft.

In a Substack blog post eloquently titled 'The election that could break up Xbox', the former founder of SuperData Research, now a professor at NYU Stern, argues that Democrat voters showed their displeasure with the growing number of data centers being built across the United States. van Dreunen cites a Wall Street Journal report alleging that voters in more than 40 towns and counties considered data center-related ballot measures, with at least 10 approving restrictions or outright bans. Moreover, a nationwide survey of over 79,000 registered voters found that candidates' positions on AI and data centers were a "major" factor in the choices of 56 percent of participants.

How does that relate to Xbox? Well, it's a fact that Microsoft has pushed heavily on building AI infrastructure and did so at a high cost, including studio closures and layoffs at the gaming division. Now, things might get much harder, with some of the newly elected Democratic governors already promising to halt new permits, end tax breaks for new data center construction, and the like.

Xbox might therefore increasingly look like a worthy sacrifice to Microsoft executives, especially as its revenue continues to decline (albeit at a reduced rate), while the Search and Advertising department grew 10% in 2026, greatly outpacing the gaming division.

Just a few weeks ago, the tech business insider website The Information reported that unnamed private equity buyers have already explored the potential acquisition of Xbox from Microsoft, valuing the division at $100 to $150 billion. A Microsoft spokesperson commented on the rumor, saying Xbox is not for sale, but that might change in the near future.

Joost van Dreunen even posits that CEO Asha Sharma's decision to establish a dedicated 'XP' department to bring Xbox franchises to other media (chiefly film and television) could make the acquisition even more appealing to certain buyers, as it helps make Xbox look like a traditional entertainment and media company.

Of course, the extent to which the US mid-term election really accelerates Microsoft's divestiture of Xbox remains to be seen; the picture painted by van Dreunen is intriguing, but far from inevitable.

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