Microsoft released an employee memo to belie speculation the company is planning to dissolve its Xbox video game brand.

In the emailed memo, Microsoft CEO Satya Nadella detailed the future of the company as well as its big plans to develop its video game console.

Nadella said the Xbox is one of the most admired consumer brands and its online community and service is still growing. Xbox's fan base is also increasing number.

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"Microsoft will continue to vigorously innovate and delight gamers with Xbox," he added.

Technology ideas included into their productivity plans are Skype speech recognition and camera technology for the Kinect motion sensor, to name a few.

Speculation about the demise of Xbox kicked off last year when Bloomberg reported that Stephen Elop, vice president of Microsoft’s devices group and former Nokia chief, was considering selling the Xbox division.

The report said that selling the gaming console business would be possible if Microsoft determined gaming isn't aligned with the company’s strategies.

Even though the sales of Xbox One showed improvements compared to its forerunner, the Xbox 360, it's still behind Sony’s PlayStation 4. Microsoft sold more than 80 million Xbox One units but PS4 has remained the top-selling console in the United Stated for five consecutive months.

Microsoft offered a version of its latest gaming console that competes head-to-head against the US$399 price of Sony’s PlayStation 4 but that model doesn't include Kinect.

TagsXbox, playstation 4, sony, sony playstation 4, online game, RPG, Xbox One