Microsoft CEO Satya Nadella says he has no intention of selling the Xbox business.
"I have no intent to do anything different with Xbox than we are doing today," Nadella told reporters at the Code Conference in California this week, The Verge reports.
Following the announcement in August 2013 that then-Microsoft leader Steve Ballmer was to retire upon the appointment of a successor, it was speculated that the company may look to spin off the Xbox business, one of its lower-margin divisions that doesn't drive sales of its core business services and software, in order to unlock shareholder value.
Data compiled by Bloomberg at the time suggested Xbox may be worth at least $17 billion (£10.1b).
Nadella was appointed Microsoft's new CEO in February. He joined the company in 1992 and previously managed the Cloud and Enterprise group, one of its fastest growing sectors.
Microsoft reported in late April that Xbox One shipments totalled five million units, while Sony said last month that PS4 sales stood at seven million units as of April 6. Both platforms launched in November 2013.