Microsoft hasn’t ruled out spinning off Xbox

Microsoft is reportedly preparing significant Xbox layoffs while reassessing plans for its next-generation Project Helix console. The company has considered major structural changes for Xbox, including making it a wholly owned subsidiary, forming a joint venture, or potentially spinning off or selling the business, though no move appears imminent.

The report signals growing pressure on Microsoft to make Xbox more sustainable after years of hardware challenges and shifting gaming economics. A possible spinoff would mark a major break from Microsoft’s long-running console strategy and could accelerate the industry’s move toward services, subscriptions, and platform-agnostic gaming.

Asha Sharma. | Image: The Verge, Microsoft

Microsoft is preparing to lay off a significant chunk of its Xbox division and is reevaluating the plans for its next-generation Project Helix console. It's apparently also considering dramatically restructuring its relationship with Xbox, and hasn't ruled out spinning it off into a separate company. A new report from The Information suggests that Microsoft has considered some dramatic measures to make its Xbox unit more sustainable. That includes turning it 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 … Read the full story at The Verge.