Microsoft reportedly considering restructuring Xbox into its own “wholly-owned subsidiary” and “moving faster” on releasing first-party games

A new report claims Microsoft is considering “spinning out” Xbox into its own company.

The fresh claims – reported by The Information and shared by Windows Central – suggest Microsoft “hasn’t ruled out” not only reorganising Xbox, but possibly spinning it out into a “wholly-owned subsidiary” or “creating a joint venture with other partners”.

Sources claim Microsoft doesn’t “have any imminent restructuring plans”, but did acknowledge “those options are on the table” if doing so would “make Xbox a more successful business”.

The same report also hinted that “Xbox will move faster on developing new games from beloved franchises it owns”, including first-party intellectual properties like Halo, Fallout, and The Elder Scrolls. It’s thought the latter two are “particular areas of focus” for new CEO Asha Sharma, as she considers “spend[ing] more on top-tier games in the coming fiscal year”.

It’s just the latest in a truly bewildering line of rumours and speculation, including reports that Xbox is reportedly slashing budgets and preparing to lay off a “significant” number of staff, as part of new Sharma’s business “reset” for the Xbox brand that includes keeping Gears of War: E-Day a console exclusive to help Xbox win back its core audience.

It’s thought the first of these cuts will come in July, soon after the conclusion of the company’s fiscal year. According to Bloomberg sources, Xbox is also planning major cuts to marketing budgets after Sharma spoke publicly about the financial challenges facing Xbox, admitting it was not in “a healthy spot”.