Microsoft may spin off struggling XBox division
by Rob Beschizza · Boing BoingThe Information reports that Microsoft is considering several ways to set loose its XBox gaming division, including spinning it out as a separate company, restructuring it as a subsidiary, or establishing a joint venture. Reuters echoes the paywalled report, which is clear about the intended conclusion: selling it off.
Xbox has struggled in recent years as Microsoft's bet on subscriptions and cloud gaming failed to offset declining console sales and a shortage of blockbuster titles. While no restructuring is imminent, all the options remain on the table, the Information reported. Microsoft operates professional network LinkedIn and software development platform GitHub as wholly owned subsidiaries, a model that could serve as a blueprint for the Xbox unit.
Layoffs are looming there, Bloomberg reported earlier this week, with cuts expected to marketing budgets. Instead, new XBox CEO Asha Sharma is boosting spending on top titles, with Halo, Fallout and The Elder Scrolls among the franchises expected to see "accelerated" development.
I like the joint venture idea. Sega's had a tough stretch!
1. Microsoft spins off struggling XBox division (www.reuters.com/business/mic…)2. SegaSammy spins off the struggling Sega division (godisageek.com/2026/05/sega…)3. ??????4. Dreamcast 2
— Rob Beschizza (@beschizza.com) 2026-06-12T22:50:00.516Z