Microsoft hasn’t ruled out spinning off Xbox
Nothing is imminent, but nothing is off the table.
by Terrence O'Brien
Jun 13, 2026, 4:29 PM UTC
Terrence O'Brien is the Verge’s weekend editor. He has over 18 years of experience, including 10 years as managing editor at Engadget.
Microsoft is preparing to lay off a significant chunk of its Xbox division and is reevaluating the plans for its next-generation Project Helix console. It’s apparently also considering dramatically restructuring its relationship with Xbox, and hasn’t ruled out spinning it off into a separate company.
A new report from The Informationsuggests that Microsoft has considered some dramatic measures to make its Xbox unit more sustainable. That includes turning it into a wholly owned subsidiary, a joint venture, or even spinning it off entirely, with the possibility of selling the business. The report doesn’t suggest anything is imminent, but it does seem that new Xbox CEO Asha Sharma and Microsoft...
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