XBOX Could Become a Separate Company: Various Strategies for the Gaming Business Under Review
The plan "XBOX reset" could evolve into something even more significant, well beyond staff cuts and the introduction of new business strategies. According to various sources cited by The Information, the company's management is reflecting on possible changes that could alter the relationship between the gaming division and the parent company.
Although decisions are not considered imminent, Microsoft is evaluating a profound review of XBOX's corporate structure: among the options being considered is the transformation of XBOX into a wholly owned subsidiary of Microsoft, a structure already adopted for entities like LinkedIn and GitHub.
Such a solution would allow for full control of the activity while guaranteeing greater management autonomy and simplifying, if necessary in the future, the entry of partners or potential extraordinary operations.
Sources indicate that other options are also on the table. These include the creation of a joint venture with external parties or a broader spin-off of the gaming division. For now, however, Microsoft is simply assessing possible long-term scenarios to increase the economic sustainability of the gaming-related activities.
The rumors come at a particularly delicate moment for XBOX. In recent years, the division has been at the center of significant investments, culminating in acquisitions of Activision Blizzard and ZeniMax Media, but the profitability of the business continues to be a central theme. The organizational structure of the gaming group has also become quite complex, including over twenty entities distributed among Xbox Game Studios, Activision Blizzard King, and Bethesda.
For this reason, some observers believe a future rationalization of activities is possible, which could involve development studios or projects considered less strategic. However, at present, there are no official indications in this regard from the company.
In parallel with the corporate evaluations, Microsoft is reportedly preparing to strengthen its software offerings. The strategy approved by the company’s leadership, including CEO Satya Nadella and CFO Amy Hood, aims to increase investments in high-end video games starting from the next fiscal year.
The goal would be to accelerate the development of the most important franchises in the XBOX catalog. Among the identified priorities are Halo, Fallout, and Elder Scrolls, with particular attention to the latter two brands, considered among the most relevant intellectual properties within the Microsoft ecosystem after recent acquisitions.
The plan has reportedly been developed under the guidance of Asha Sharma, recently appointed CEO of XBOX. Sources clarify, however, that the final budgets have not yet been conclusively approved and may be subject to changes in the coming months.
For the moment, therefore, Microsoft seems to be pursuing a dual strategy: on one hand, evaluating possible organizational evolutions to improve the efficiency and profitability of the gaming business, and on the other, strengthening the portfolio of first-party productions focused on the most well-known and profitable brands. It remains to be seen whether the ongoing discussions will lead to concrete structural changes or if XBOX will continue to operate within the current corporate organization.