Microsoft is preparing to lay off a significant portion of its Xbox division and is reevaluating plans for its next-generation Project Helix console. The company is also considering a dramatic restructuring of its relationship with Xbox, including the possibility of spinning it off into a separate company.
Restructuring Options on the Table
A new report from The Information suggests that Microsoft has considered several drastic measures to make its Xbox unit more sustainable. These include turning it into a wholly owned subsidiary, forming a joint venture, or spinning it off entirely, with the potential to sell the business. While the report indicates nothing is imminent, it appears that new Xbox CEO Asha Sharma and Microsoft CEO Satya Nadella have not ruled out any options regarding Xbox's future.
Investment in Major Franchises
Sharma has secured approval to invest heavily in flagship titles such as Halo and Fallout. Halo has not seen a new release since 2021, and the last mainline Fallout title was Fallout 4 in 2015. She has also confirmed that major upcoming releases, including Gears of War: E-Day and Clockwork Revolution, will be Xbox exclusives. However, this investment in popular franchises is likely to come at the expense of smaller studios and games that have failed to meet sales expectations.
