Sharma's comments follow reporting from The Information that Microsoft CEO Satya Nadella and CFO Amy Hood had at one point considered spinning out Xbox entirely. The outlet reported earlier this month that both executives had more recently backed Sharma's plans to overhaul the unit.
"We will do whatever it takes to set the company up for success, and we will look at the right partnerships, the right operating model and everything needed to achieve that," Sharma told The New York Times, without addressing the specifics of the earlier reports.
The reports had fueled speculation about the future of one of Microsoft's most visible consumer brands, and about the broader strategy for its gaming division.