Xbox reportedly plans to speed up development of its flagship franchises amid a major strategic overhaul.
Microsoft's gaming division, Xbox, may undergo major restructuring and place renewed emphasis on the development of its owned video game franchises, according to a report by The Information (via Reuters).
The report, citing three people familiar with ongoing discussions within Microsoft, stated that Xbox could potentially spin off or restructure as a wholly owned subsidiary, granting it greater independence from its parent company while still remaining firmly under Microsoft's umbrella. LinkedIn and GitHub, both wholly owned subsidiaries of Microsoft, could serve as the blueprint for such a move.
Another weighted option is Xbox "creating a joint venture with other partners". This comes just days after reports emerged of imminent layoffs within Microsoft's gaming division, following an extensive post by newly-appointed Xbox CEO Asha Sharma outlining the challenges facing the business. According to the report, entering into joint ventures with other partners "could make the gaming business easier to sell".
What games could be affected in this strategy shift?
Xbox may also renew its focus on some of its most prominent franchises. The report revealed that Sharma plans to channel further investment into the company's most successful properties, including Halo, Fallout and The Elder Scrolls.
Halo already has its next release, the Halo: The Campaign Evolved remake, lined up for launch next month, marking the franchise's first title since Halo Infinite in 2021.
Bethesda's flagship series, however, face a less certain future. A new Fallout game has not been officially revealed, and thus the franchise has stagnated since the release of 2018's Fallout 76. The same can be said for The Elder Scrolls VI, which was first teased in 2018 and has yet to receive substantial development updates.
Should this strategic shift materialise, it could fast-track these highly-anticipated titles after years of uncertainty.
Why is Xbox undergoing potential restructuring?
Reports of major restructuring within Xbox, and its position as Microsoft's gaming division, may not come as a complete surprise. Xbox has faced a difficult few years, notably losing millions of Game Pass subscribers following a price increase in 2025. The subscription service provides access to a library of games as well as online multiplayer features.
Under Sharma's leadership, the company reversed that decision earlier this year by reducing the price of Game Pass. However, with further challenges reportedly on the horizon, Xbox may still be preparing for additional changes.
The company has also recently pivoted back towards console exclusives. During the Xbox Games Showcase, it revealed that upcoming titles such as Gears of War: E-Day and Clockwork Revolution would launch exclusively on Xbox platforms.
We may see further significant changes as Xbox continues its overhaul in an effort to steer the business back on course, and prepare for the launch of Project Helix, its next-generation console.
