Microsoft is reportedly considering spinning off Xbox into its own separate subsidiary, and fast-tracking plans for new Fallout and Elder Scrolls games.
That’s according to the reliable Information, which claims that Microsoft hasn’t ruled out spinning out or restructuring its gaming division as a wholly owned subsidiary, or creating a joint venture with other partners, as Xbox continues its ‘reset’ under new CEO Asham Sharma.
Making Xbox a subsidiary would, in theory, allow it to be more autonomous from its parent company, set its own budgets and strategies, and potentially make it easier to sell off in the future.
Microsoft currently operates LinkedIn and GitHub as wholly owned subsidiaries.
“Microsoft doesn’t have any imminent restructuring plans, but those options are on the table,” The Information’s sources said. “Nadella and Hood haven’t ruled out restructuring Xbox’s relationship to Microsoft at some point in the future if doing so would make Xbox a more successful business, the people said.”
In addition, it’s claimed that Microsoft CEO Satya Nadella and Chief Financial Officer Amy Hood have approved of Sharma’s plan to spend more on top-tier games in the coming fiscal year beginning in July.
In particular, it’s claimed that Xbox will “move faster” on developing new games in its biggest franchises, including Halo, Fallout, and The Elder Scrolls, with Sharma reportedly keen on the latter two.
Bethesda hasn’t put out new mainline Fallout or Elder Scrolls games in over a decade, which is likely a frustration to its parent company, especially considering the popularity of the Fallout Amazon show.
Last weekend, Xbox’s games boss provided a rare update on The Elder Scrolls 6, nearly exactly eight years after it was first announced, claiming that he’d seen it running and it “looks amazing”.
The Information report follows a week of bad news stories for Xbox, including claims it could be about to shut down one of its game studios, as part of expected significant cuts reportedly taking place next month.
On Wednesday, Xbox CEO Asha Sharma published a note sent to staff, in which she shared “realities that we need to navigate”, such as that its annual revenue has declined nearly half a billion in five years, hardware costs are up 4x since last year, and its studio system is “overextended”.
