Microsoft may consider spinning off Xbox in the future.

Microsoft is gearing up for significant changes within its Xbox division, including potential layoffs and a reassessment of its next-gen Project Helix console. The company is reportedly exploring various options for restructuring its relationship with Xbox, including the possibility of spinning it off into a standalone entity.

A recent report indicates that Microsoft is considering bold strategies to enhance the sustainability of its Xbox unit. This could involve transforming it into a wholly owned subsidiary, forming a joint venture, or even selling the business entirely. While no immediate actions are suggested, it appears that new Xbox CEO Asha Sharma and Microsoft CEO Satya Nadella are keeping all options open regarding Xbox’s future.

Sharma has received the green light to make significant investments in major franchises like Halo and Fallout. The last Halo release was in 2021, and Fallout 4, the most recent mainline entry, launched back in 2015. Additionally, she has confirmed that upcoming titles such as Gears of War: E-Day and Clockwork Revolution will be exclusive to Xbox. However, this focus on flagship franchises may come at the cost of smaller studios and games that haven’t met sales expectations.