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Microsoft hasn’t ruled out spinning off Xbox

The Verge·June 13, 2026

Microsoft is reportedly planning significant layoffs within its Xbox division and reevaluating plans for its next-generation Project Helix console. The company is considering restructuring its relationship with Xbox, including the possibility of spinning it off into a separate company. According to a report from The Information, Microsoft has explored options such as turning Xbox into a wholly owned subsidiary or joint venture, or even selling the business entirely. These dramatic measures are aimed at making the Xbox unit more sustainable, although no immediate changes are expected.

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