Microsoft hasn’t ruled out spinning off Xbox
Microsoft is considering restructuring its Xbox division, including a potential spin-off, but no decisions are imminent.
Microsoft is preparing significant layoffs within its Xbox division and reevaluating plans for its next-generation Project Helix console. According to a report from The Information, the company is contemplating several dramatic measures to make its Xbox unit more sustainable. Options include turning it into a wholly owned subsidiary, forming a joint venture, or spinning off the division entirely with a possible sale.
New Xbox CEO Asha Sharma and Microsoft CEO Satya Nadella have reportedly not taken any options off the table. Meanwhile, Sharma has received approval to invest heavily in major franchises like Halo and Fallout. The Halo series has not seen a new release since 2021, and the last mainline Fallout title was Fallout 4 in 2015. She has also confirmed that upcoming titles Gears of War: E-Day and Clockwork Revolution will be Xbox exclusives.
These investments in flagship franchises are likely to come at the expense of smaller studios and games that have failed to meet sales expectations.
