A new report suggests that Xbox CEO Asha Sharma is speeding up development on new entries in The Elder Scrolls, Fallout, and Halo series, as Microsoft considers restructuring or spinning off its gaming division. According to The Information (via Reuters), citing three sources, Microsoft hasn't ruled out turning Xbox into a wholly-owned subsidiary. This could lead to Xbox operating as a joint venture with other partners or even being sold. However, the company currently has no imminent restructuring plans, and the seriousness of the potential strategy remains unclear. If such a move occurs, it would fundamentally alter not only one of the three major console manufacturers but the entire industry. Theoretically, the gaming branch, which has been around for 25 years, could still operate within Microsoft, just with more distance from the parent company. The Information notes that a restructuring could follow the model of LinkedIn and GitHub, which are also wholly-owned subsidiaries. For now, Microsoft's goal is simply to make Xbox more successful. Meanwhile, Sharma is pushing development on core franchises like Halo, The Elder Scrolls, and Fallout, with particular interest in the latter two. It's unclear how resources will be allocated or when new installments might launch. The report doesn't specify whether this means faster development of long-awaited mainline titles like The Elder Scrolls 6 or Fallout 5, or spin-offs and remasters like the rumored Fallout 3 remaster. These games have been discussed by Xbox publisher Bethesda Softworks without release dates, so they could still be years away even if prioritized. The Information also reports that Microsoft CEO Satya Nadella and CFO Amy Hood have approved extra spending for bringing big games to Xbox this fiscal year, though the budget could change. This news comes at a turbulent time for Xbox. Fans celebrated the Xbox Games Showcase 2026 with big announcements like Gears of War: E-Day, Fable, and Spyro: A Realm Beyond. However, subsequent days brought confusion over exclusive titles due to reports and leaked Gears of War art featuring a PS5 logo. Xbox also recently outlined plans to 'reset' its gaming wing and warned of impending July layoffs.
