Microsoft considers spinning out Xbox into subsidiary

Microsoft is weighing options to restructure its Xbox division, including turning it into a wholly-owned subsidiary. The move aims to boost the business performance of the gaming unit.

A report from The Information indicates Microsoft has not ruled out reorganising Xbox or creating a joint venture with partners. No immediate changes are planned, but such steps remain under consideration to improve Xbox as a business.

The division is also expected to accelerate development of new games from its owned franchises. Fallout and The Elder Scrolls have been highlighted as particular priorities under new CEO Asha Sharma.

Additional reports mention potential staff reductions and marketing budget cuts starting in July. Sharma has publicly noted that Xbox is not currently in a healthy spot financially.

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Xbox executives announce return to Xbox branding and reevaluation of game exclusivity in a company meeting.
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Xbox drops Microsoft Gaming name and reevaluates exclusivity

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Xbox CEO Asha Sharma and chief content officer Matt Booty announced the gaming division is reverting from 'Microsoft Gaming' to simply 'Xbox.' In a memo shared on Xbox Wire following an all-hands meeting, they addressed player frustrations and pledged to reevaluate the approach to game exclusivity. The move signals a renewed focus on console as the foundation amid broader platform ambitions.

Xbox's new chief executive Asha Sharma plans to speed up development of major franchises such as Halo and Fallout. Resources will be shifted from lower-performing areas while overall budgets stay flat. Microsoft leaders have approved the changes for the coming fiscal year.

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Satya Nadella said Xbox must pursue economically viable growth after years of heavy investment with limited returns. He spoke at The New York Times Hard Fork event on June 10.

Asha Sharma, Microsoft's new gaming CEO, has reportedly discussed bundling Xbox Game Pass with Netflix to reduce costs for subscribers. These efforts follow recent price increases for the service. The ideas emerged from conversations with Netflix co-CEO Greg Peters.

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Matthew Ball, Xbox's new chief strategy officer, has voiced strong support for traditional console gaming in his first public comments since joining the leadership team. He described the platform as important, durable, and still growing.

Asha Sharma, CEO of Xbox, has announced that the brand is now XBOX in all capital letters. The change follows a poll on X that favored the uppercase version by a two-to-one margin.

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Recent sales figures for Black Ops 7 have contributed to declining software revenue at Xbox, prompting new leadership to signal upcoming changes. Executives have linked the results to broader platform challenges following the Activision Blizzard acquisition.

 

 

 

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