Insiders indicate Xbox is eager for the quick release of Elder Scrolls 6 and a new Fallout game.

New Xbox CEO Asha Sharma has hinted at significant changes on the horizon for Microsoft’s gaming division in the next 100 days, with recent reports shedding light on what these plans might entail. The focus appears to be shifting towards revitalizing Xbox’s most prominent franchises and potentially transforming Xbox into a standalone subsidiary of Microsoft, rather than just a division.

A report highlighted that several games released by Xbox in recent years—such as Avowed, Forza Motorsport, Keeper, Kiln, Minecraft Legends, Ninja Gaiden 4, Senua’s Saga: Hellblade 2, and South of Midnight—failed to meet sales expectations and retain players on Game Pass. Coupled with rising hardware costs, lengthy development cycles, and multiple canceled projects, these factors have significantly impacted Xbox’s financial health, underscoring the need for Asha Sharma’s sweeping changes.

Another report detailed the nature of these changes, confirming a renewed emphasis on Xbox’s flagship franchises like Halo, Fallout, and The Elder Scrolls. With a noticeable absence of new titles in these series over the past few years, the new leadership aims to reinvest in these established IPs, hoping to drive future success.

Perhaps most intriguingly, there are discussions about the possibility of spinning off Xbox from Microsoft entirely. This could lead to Xbox being restructured as a wholly owned subsidiary or even a joint venture open to investments from other companies. While the report notes that such a drastic restructuring isn’t imminent, the mere consideration of it is quite surprising.

These insights reveal the challenging position Xbox currently finds itself in and indicate that substantial changes are necessary for its survival. In the immediate future, layoffs are anticipated, and in the long run, Xbox is likely to prioritize established franchises like Halo and The Elder Scrolls over more experimental projects like Keeper or South of Midnight.

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