Microsoft (MSFT) hasn't ruled out spinning out or restructuring its Xbox gaming unit as a subsidiary or creating a joint venture with outside partners, though no imminent plans are in place, The Information reported Friday, citing three people with direct knowledge of the discussions.
On Wednesday, Xbox warned it is facing a hardware component "crisis," with storage costs now more than five times higher than two years ago and another significant increase expected heading into the 2027 holiday season.
Xbox CEO Asha Sharma is planning layoffs as well as cost cuts at less-popular game studios while simultaneously boosting spending on marquee franchises including Halo, Fallout and Elder Scrolls, titles that haven't seen new mainline releases since 2021, 2014 and 2011, respectively, the report said.
The moves have been approved by CEO Satya Nadella and CFO Amy Hood, though the budget is not yet finalized, the report added.
Microsoft and Xbox did not immediately respond to a request for comment from.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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