Uploaded June 2026 | Updated September 2026, 2 weeks ago
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The Information: Microsoft Has Considered Spinning Out Xbox, Plans New ‘Halo,’ ‘Fallout’ Games Microsoft hasn't ruled out restructuring Xbox's business
Options on the table include spinning off Xbox, making it a joint venture, or a wholly owned subsidiary of Microsoft like LinkedIn
[via The Information] "As Microsoft gets ready to overhaul its struggling Xbox gaming unit, it hasn't ruled out spinning out or restructuring the unit as a wholly-owned subsidiary, which could make it easier to sell, or creating a joint venture with other partners, according to three people with direct knowledge of the discussions." Xbox plans 'major reset' at the company going forward as the business falls under strain:
▪️Excluding Activision, Xbox has lost roughly half a billion dollars in revenue per year over the past five years
▪️Will end this fiscal year at ~3% profitability, down year-over-year
▪️Prices for console storage components will be 5x what they were last Fall
▪️Xbox has been impacted "more greatly" than many of their peers due to choice made in the past 5 years
▪️Need new business models and partnerships for hardware, committed to Helix
▪️Xbox is "overextended" after expanding the amount of first party studios
▪️"Need to reassess the balance" in investment priorities for the next 5 years
▪️Will "evolve and rebuild our stack and look at capabilities across all of Xbox and potential M&A to help us win in hardware, PC, mobile, and streaming"
Follow me on social media:
Instagram: instagram.com/dreamcastguy
Patreon: patreon.com/DreamcastGuy
Twitch: twitch.tv/thedreamcastguy
The Information: Microsoft Has Considered Spinning Out Xbox, Plans New ‘Halo,’ ‘Fallout’ Games Microsoft hasn't ruled out restructuring Xbox's business
Options on the table include spinning off Xbox, making it a joint venture, or a wholly owned subsidiary of Microsoft like LinkedIn
[via The Information] "As Microsoft gets ready to overhaul its struggling Xbox gaming unit, it hasn't ruled out spinning out or restructuring the unit as a wholly-owned subsidiary, which could make it easier to sell, or creating a joint venture with other partners, according to three people with direct knowledge of the discussions." Xbox plans 'major reset' at the company going forward as the business falls under strain:
▪️Excluding Activision, Xbox has lost roughly half a billion dollars in revenue per year over the past five years
▪️Will end this fiscal year at ~3% profitability, down year-over-year
▪️Prices for console storage components will be 5x what they were last Fall
▪️Xbox has been impacted "more greatly" than many of their peers due to choice made in the past 5 years
▪️Need new business models and partnerships for hardware, committed to Helix
▪️Xbox is "overextended" after expanding the amount of first party studios
▪️"Need to reassess the balance" in investment priorities for the next 5 years
▪️Will "evolve and rebuild our stack and look at capabilities across all of Xbox and potential M&A to help us win in hardware, PC, mobile, and streaming"
