Microsoft has reportedly explored several long-term options for the future structure of its Xbox business, including the possibility of turning the gaming division into a wholly owned subsidiary, according to a report from The Information.
Citing three people with direct knowledge of internal discussions, the report states that Microsoft has not ruled out restructuring Xbox in a way that could make the business easier to sell, establish as a joint venture, or operate with greater independence from the broader company. The sources emphasized that Microsoft does not currently have any imminent plans to pursue such changes.
Among the possibilities reportedly discussed is a structure similar to Microsoft’s ownership of LinkedIn and GitHub, both of which operate as wholly owned subsidiaries. According to the report, such a model could potentially serve as a blueprint for Xbox in the future.
The report also claims Microsoft is preparing to place greater emphasis on first-party game development, with franchises such as Halo, Fallout, and The Elder Scrolls expected to play a major role in the company’s strategy moving forward. Fallout and The Elder Scrolls are reportedly areas of particular focus for Xbox leadership.
According to The Information, Microsoft CEO Satya Nadella and Chief Financial Officer Amy Hood have approved plans to increase spending on major game projects during the next fiscal year, which begins in July. However, the report notes that the budget has not yet been finalized and could still change.
Sources cited by the publication claim that Nadella and Hood remain open to altering Xbox’s corporate structure in the future if doing so would improve the business’s performance. Options allegedly discussed include maintaining Xbox as a wholly owned subsidiary, creating a joint venture with external partners, or potentially spinning the business out entirely.
Microsoft has not publicly commented on the report. As things stand, the discussions described by The Information appear to be exploratory in nature, with no indication that a restructuring is currently planned or under active implementation.
