Microsoft reportedly considered spinning off its Xbox gaming division as part of a major strategic overhaul. The company explored restructuring the unit as a wholly-owned subsidiary similar to LinkedIn or forming a joint venture. There are currently no immediate plans to proceed with a separation.
New Xbox head Asha Sharma is leading the business reset following declining revenue and planned budget cuts. Microsoft intends to accelerate development for major franchises including Halo and Fallout to bolster its content pipeline.