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Microsoft Eyes Xbox Future: Layoffs, Divestment on the Table
13 Jun
Summary
- Microsoft is considering drastic changes for its Xbox division.
- Options include spinning off Xbox or selling the entire business.
- Investment in major franchises like Halo and Fallout is prioritized.

Microsoft is contemplating a major overhaul of its Xbox division, with reports indicating significant layoffs are being prepared. The company is also reassessing plans for its next-generation 'Project Helix' console.
New leadership, including Xbox CEO Asha Sharma and Microsoft CEO Satya Nadella, is exploring a range of strategic options. These considerations reportedly include transforming Xbox into a wholly owned subsidiary, establishing it as a joint venture, or even spinning it off as a separate entity, with the possibility of selling the division entirely.
Despite these potential structural changes, there is a commitment to investing in key franchises such as Halo and Fallout. Upcoming exclusive titles like Gears of War: E-Day and Clockwork Revolution are also slated for significant support. However, this strategic focus on major releases may lead to reductions in support for smaller studios and less successful games.