Microsoft weighs Xbox spin off after nearly $500 million revenue loss
Business
Microsoft is thinking about spinning off or restructuring its Xbox division after years of falling profits.
Xbox has lost nearly $500 million in revenue over the last five years and is running on a thin 3% margin, according to CEO Asha Sharma.
The company is weighing big changes, including possibly selling or partnering up, to get things back on track.
Microsoft plans franchise reinvestment, layoffs possible
To turn things around, Microsoft plans to invest more in major franchises like Fallout, The Elder Scrolls, and Halo, games Sharma says haven't gotten enough love lately.
But with this shakeup, there could also be layoffs and studio closures as soon as next month, as Microsoft shifts focus toward AI and cloud businesses.