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As Xbox has declined, with console sales plummeting and Game Pass figures plateauing, many have wondered if Microsoft, which is considerably larger than its gaming business, would lose interest in the struggling brand and just pawn it off. According to a new report, options in this space have been considered.
The Information (via Reuters) reports, citing three people familiar with plans and discussions, that Microsoft considered spinning out Xbox as a separate, wholly owned subsidiary more similar to the likes of LinkedIn in terms of its relationship with the Microsoft mothership.
Other options reportedly included finding an outside business partner for an Xbox overhaul or, perhaps through that aforementioned spinning out, making the whole brand easier to sell to somebody else outright. No potential partners or buyers were reported, seemingly because these possibilities never went beyond an idea floated internally, but one hypothetical certainly comes to mind: the Saudi Arabia-led investors currently in the process of buying EA in the hopes of securing a foothold in the games industry.
I've reached out to Microsoft for comment on the report.
The Information says changes are not coming immediately, but this report follows word of heavy layoffs expected at Xbox in July.
This comes on the heels of a grim letter from new Xbox CEO Asha Sharma and chief content officer Matt Booty, who acknowledged that Xbox is not where Microsoft wants it to be and insisted "this cannot continue."
Sharma has pushed for a "brand reset" for Xbox amid a volatile Summer Game Fest, which saw Gears of War: E-Day yanked from PS5 and propped up as a return to Xbox console exclusives, even as Halo, a tentpole Xbox IP, comes to PS5 as previously announced.
Rumors swirl that Xbox pulled a planned Halo: Campaign Evolved trailer from this month's PlayStation showcase at the eleventh hour, irritating the folks at Sony. Nearly every day, some new sign of instability surfaces, supporting claims that Xbox is due for dramatic change.
"Xbox will dissolve into Windows," ex PlayStation boss says, which is Microsoft's "strength."
