Microsoft is reportedly exploring significant structural changes for its Xbox division, including the possibility of spinning it out into a "wholly-owned subsidiary," according to a report from The Information.
While no immediate restructuring plans are confirmed, sources suggest that such options are being considered to enhance Xbox's business performance. The potential move could also pave the way for joint ventures with other partners. This evaluation comes as Microsoft aims to accelerate the development and release of first-party games across its owned franchises, such as Halo, Fallout, and The Elder Scrolls. New CEO Asha Sharma is reportedly focusing on these intellectual properties and may increase investment in top-tier games in the upcoming fiscal year.
These considerations follow recent reports indicating budget cuts and potential layoffs within the Xbox division as part of a broader business reset. New strategies reportedly include maintaining console exclusivity for titles like Gears of War: E-Day to re-engage the core audience. Earlier reports also highlighted Xbox's plans to reduce marketing expenditures, with Sharma acknowledging the division's current financial challenges. The first wave of budget adjustments is anticipated in July, following the close of the company's fiscal year.