Microsoft is reportedly preparing to lay off a significant chunk of its Xbox division and is reassessing plans for its next-generation Project Helix console. According to a new report from The Information, the company has considered turning Xbox into a wholly owned subsidiary, a joint venture, or even spinning it off entirely, with the possibility of selling the business. The report doesn't suggest anything is imminent, but it does indicate that new Xbox CEO Asha Sharma and Microsoft CEO Satya Nadella haven't taken anything off the table when it comes to the future of Xbox.
Sharma has won approval to invest heavily in tentpole titles like Halo and Fallout. The former hasn't seen a new release since 2021, and the last mainline Fallout title was Fallout 4 in 2015. She has also said that major upcoming releases Gears of War: E-Day and Clockwork Revolution would be Xbox exclusive. Though this investment in its most popular franchises is likely to come at the expense of smaller studios and games that have failed to live up to sales expectations.