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Microsoft may turn Xbox into a seperate company - Report

Mahaksh has been a part of Khel Now since 2024. He covers gaming-related news and updates.
Published at :June 15, 2026 at 7:22 AM
Modified at :June 15, 2026 at 7:23 AM
Xbox console

(Courtesy : XBOX, Microsoft)

This might change things forever!

It appears that Microsoft is reportedly considering significant changes to Xbox’s future. The new reports from industry insiders suggest that the gaming division could become a standalone company.

For now, there has been no final decision made or any confirmation or statement that Microsoft has released as of now. There is no doubt that Microsoft is now closely following and evaluating the long-term future of its gaming business.

Xbox could become an independent company

According to a new report from The Information, it has been discussed that the gaming division could be its own independent company.

Based on this, Xbox would operate 100% separately from Microsoft. They will manage their own business strategies, operations and future growth for their division.

There is also another possibility that is mentioned in the report: Transform it to a wholly owned subsidiary. This would allow it to function more independently while still remaining under Microsoft’s complete ownership and control.

Now, there is also a third option, which is to create a joint venture with external partners. With this, additional investors and management support can easily get involved. But there is also a chance that this move might alter the whole brand and its image.

Do remember that nothing is officially announced or confirmed yet.

Also Read: New Crash Bandicoot game rumored to be in development at Xbox

Reasons behind the reported changes

According to the report, Microsoft wants Xbox to deliver games from its biggest franchises at a more consistent and faster pace.

By studying a new business structure could streamline the development and improve efficiency across the gaming studios.

If this is all true and they move on with this plan, fans and gamers might see more of Halo, Gears of War, Elder Scrolls, Fable and other big franchises with more frequent releases.

Is Microsoft really planning to spin off Xbox?

According to recent reports, Microsoft is exploring the possibility, but no official decision has been made. The idea is currently being discussed internally.

Why would Microsoft restructure Xbox?

The goal is reportedly to improve efficiency, speed up game development, and help Xbox release titles from major franchises more frequently.

What other options are being considered for Xbox?

Besides a full spin-off, Microsoft is reportedly considering making it a wholly owned subsidiary or creating a joint venture with external partners.

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Mahaksh Chouhan
Mahaksh Chouhan

Mahaksh Chauhan is a passionate gaming journalist who loves for old-school RPGs and turn-based games. With a keen eye for storytelling and a deep understanding of game mechanics, Mahaksh brings an unique perspective to the world of gaming. Inspired by classics like Persona, Red Dead Redemption 2, and Skyrim, Mahaksh is dedicated in sharing the magic of games with readers. When not writing or gaming, Mahaksh can be found cheering on WWE superstars or watching his favourite Anime.