<div id="readability-page-1"><figure> <img src="https://imageproxy.pbkrs.com/https://platform.theverge.com/wp-content/uploads/sites/2/2026/02/268364_Inside_Microsofts_big_Xbox_leadership_shakeup_CVirginia.jpg/query-Y3JvcD0wLDAsMTAwLDEwMCZxdWFsaXR5PTkwJnN0cmlwPWFsbA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="2040" height="1360" original-src="https://imageproxy.pbkrs.com/https://platform.theverge.com/wp-content/uploads/sites/2/2026/02/268364_Inside_Microsofts_big_Xbox_leadership_shakeup_CVirginia.jpg/query-Y3JvcD0wLDAsMTAwLDEwMCZxdWFsaXR5PTkwJnN0cmlwPWFsbA"/> <figcaption> Asha Sharma. | Image: The Verge, Microsoft </figcaption> </figure> 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 Information suggests 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 … Read the full story at The Verge.</div>

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Microsoft is considering restructuring its Xbox division, potentially spinning it off into a separate entity, forming a joint venture, or selling the business to improve sustainability. This follows reports of significant layoffs within the division and a reevaluation of the next-generation Project Helix console plans.

- Microsoft is planning significant layoffs in its Xbox division and reevaluating its next-generation Project Helix console.  
- The company is considering major changes to its relationship with Xbox, which may include turning it into a subsidiary, a joint venture, or spinning it off entirely.  
- Although no immediate actions are indicated, discussions around the future of the Xbox unit emphasize the need for a more sustainable structure.

Microsoft hasn’t ruled out spinning off Xbox