Microsoft Mulled Spinning Off Xbox as Separate Entity
Microsoft explored restructuring Xbox as a subsidiary or joint venture as the gaming division struggles.
Microsoft has been weighing some dramatic options for its troubled Xbox gaming division. According to sources cited by The Information, the company considered spinning out Xbox entirely — either restructuring it as a wholly-owned subsidiary or forming a joint venture with outside partners.
None of these options have been taken off the table. The deliberations come as Microsoft prepares a broader overhaul of the Xbox unit, which has been struggling despite the company's massive investments in gaming, including its blockbuster Activision Blizzard acquisition.
A spinout or restructuring would represent a seismic shift for Microsoft's gaming strategy. Making Xbox a subsidiary could give it more operational independence while keeping it under the Microsoft umbrella. A joint venture would go even further, potentially bringing in external capital and expertise.
Microsoft hasn't made any final decisions. But the fact these conversations are happening at all says plenty about Xbox's current trajectory.