Under the leadership of the new Xbox boss Asha Sharma, things seem to be going really well behind the scenes at Microsoft: the discussions should extend to a possible spin-off. This emerges from a recent report that focuses on restructuring and strengthening well-known gaming brands.
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“The Information” claims to have learned from three people who were not named but were involved in the meetings that Microsoft is also thinking about spinning off Xbox. There are no concrete plans for this yet, the US medium says. But Microsoft is currently said to be examining whether a nominally independent subsidiary would be better for the “Xbox” brand. Microsoft has been trying, more or less unsuccessfully, to move away from associating the brand with a specific generation of consoles for a long time.
Only recently Asha Sharma pointed out that the technical arms race in hardware would probably have to come to an end due to increased costs for Microsoft. So Sharma obviously wants to save costs, and this is often a first step in selling a division of a company. A formal spin-off could be a further building block.
Investing in big brands
It also fits that, according to an earlier report, there is a threat of a new wave of layoffs at Xbox in July. The new financial year also begins in that month, and it’s not just about saving. As The Information now writes, Microsoft primarily wants to strengthen its largest gaming brands, including “Halo,” “Fallout” and “Elder Scrolls.” More should be invested in the faster development of new titles for these brands and less for smaller franchises. New games should also appear more quickly for these big three.
How much quality this acceleration appeals to players will already become apparent at the end of July: “Halo: Campaign Evolved” will be released for Xbox, PC and Playstation 5 on July 28, 2026. This is a content-expanded remake of the first “Halo” from 2001, which is considered one of the milestones of the shooter genre and contributed significantly to the success of Microsoft’s first Xbox.
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