Microsoft's gaming leg, Xbox, is now reported to be struggling, and one of the moves that the company is considering is making the latter a "wholly owned subsidiary."
Microsoft Is Considering Selling Xbox
A new report from The Information has revealed that Microsoft might make a move to spin out Xbox, and it has now been making waves across social media platforms and forums as fans and enthusiasts weigh in on the rumor.
Reports say that these leaks come from a major industry insider, with the source claiming that Microsoft is considering turning Xbox into a "wholly owned subsidiary, which could make it easier to sell."
The report also stated that Microsoft CEO Satya Nadella and Chief Financial Officer Amy Hood have considered such a restructuring in the hopes that it would make Xbox a more successful business.
Spinning Xbox into a separate subsidiary could allow the gaming division to operate more independently and move faster when it comes to game releases, according to what anonymous sources shared with The Information.
One detail buried in the report is that new Xbox CEO Asha Sharma is said to be especially interested in the futures of the "Elder Scrolls" and "Fallout" franchises.
Both series have been dormant for years, and with Bethesda now firmly under the Microsoft umbrella since 2021, the pressure to deliver new entries from those studios has only grown louder among fans.
'Struggling' Xbox Is Due for Overhaul
According to GameRant, back in February, Xbox saw a shuffle in leadership when it was announced that then-CEO Phil Spencer would be retiring. Spencer's departure from Xbox was surprising enough, but it was even more shocking when his expected successor, Sarah Bond, also stepped down.
The leadership changes came alongside Xbox's broader reset memo from Sharma, which acknowledged years of declining revenue and announced significant layoffs set to begin in July. The memo also put a sharp focus on the 2027 holiday season as a critical window for the next-generation Project Helix console.
The report ties together what has been a difficult stretch for the brand, as Xbox's console market share has continued to trail PlayStation's by a significant margin. Additionally, several high-profile exclusive games, including the reboot of "Perfect Dark," were canceled earlier this year, drawing criticism from longtime fans.
Is This the End of Xbox?
This rumor also states there Microsoft has no plans to sell Xbox anytime soon. New Xbox CEO Asha Sharma has been working to bring the company back into a positive light, and Microsoft selling off the gaming branch would be one of the biggest shake-ups that Xbox has ever seen.
Xbox still has an exciting pipeline ahead, starting with "Halo: Campaign Evolved," a game set for a July 2026 launch, followed by "Gears of War: E-Day," which arrives in October. "Fable," on the other hand, will be among the bigger anticipated releases heading into 2027. Whether the performance of those titles influences any long-term corporate decisions about Xbox's future remains to be seen.
Microsoft has not officially responded to the report from The Information, and all details should be treated as unconfirmed speculation for now.
