Microsoft’s iconic gaming brand Xbox has always existed as a gaming division within the Windows maker since the very first console released 25 years ago. According to a new report, however, we may see Microsoft significantly restructure Xbox into something else in the near future.
That news comes from The Information, which reports that according to three people familiar with ongoing discussions within Microsoft, the firm “hasn’t ruled out” reorganizing Xbox into a “wholly-owned subsidiary” or “creating a joint venture with other partners” with it.
Turning Xbox into a subsidiary would transform it into a separate, more independent company, though as its parent company with whole ownership, Microsoft would still ultimately have full control over it (LinkedIn and GitHub are examples). A joint venture, meanwhile, would invite other firms to run and invest in Xbox alongside Microsoft.
“Spinning out Xbox entirely” is also reportedly an option; presumably, this would mean giving Xbox full independence to operate outside of Microsoft’s jurisdiction.
It’s been noted that “Microsoft doesn’t have any imminent restructuring plans, but those options are on the table.” CEO Satya Nadella and CFO Amy Hood would not be opposed to a reorganization “if doing so would make Xbox a more successful business”; notably, Xbox has recently gone through major performance declines.
Additionally, it’s also been said that “Xbox will move faster on developing new games from beloved franchises it owns,” with the brand and its game publishing wing planning to focus on Halo, Fallout, and The Elder Scrolls titles.
Bethesda‘s Fallout and The Elder Scrolls franchises are “two particular areas of focus” for Xbox’s new CEO Asha Sharma; there hasn’t been a new Fallout game since 2018’s Fallout 76, and The Elder Scrolls 6, despite being announced that year, is still in development.
Next month will bring the arrival of Halo: Campaign Evolved, a remake of the original 2001 Halo: Combat Evolved shooter built with Unreal Engine 5. It’s scheduled to release on Xbox, PC, and PS5 (a first for the series) on July 28, and will be the first new Halo title since 2021’s Halo Infinite.
Starting in July, it’s been said that Sharma will begin to execute a plan “to spend more on top-tier games in the coming fiscal year,” with both Nadella and Hood reportedly giving that plan the green light. However, the budget allocated for this hasn’t been “locked in” and could still be adjusted.
Assuming everything in this report is true, it’s interesting to know that Microsoft is floating the idea of a major Xbox restructure as Sharma begins to work towards her goal of making Xbox “where the world plays.” Such a move may coincide with layoffs we know are coming in July.
As a massive fan of all three game series mentioned directly, I’m also stoked to learn that Xbox wants to speed up the production of new Halo, Fallout, and The Elder Scrolls games. These represent some of Microsoft’s biggest gaming IPs, and it’s a real shame that there’ve barely been any new releases for them in the past decade.
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