It’s probably safe to say that Microsoft is not exactly happy with its Xbox division and its performance. Last year, when the company laid off about 9,000 staffers, people from the Xbox division were not spared. And now, it looks like the Windows maker is considering more drastic measures, including spinning Xbox off into a separate entity.
The Verge cites a report by The Information that the spinning off is among potential measures to make the Xbox unit more sustainable. Other potential options include turning it into a wholly owned subsidiary, or even a joint venture. Both of those seem a lot less drastic than turning the videogames division into its own company, though it’s not particularly far off.
On one hand, Microsoft turning Xbox into a subsidiary would probably make a lot of sense. After all, PlayStation is a subsidiary of Sony, going with the official designation of Sony Interactive Entertainment. If it were to be a joint venture, it could work if the company got its other videogames-related subsidiaries like Activision Blizzard and ZeniMax to co-own the Xbox name, weird as that relationship may be.
Of course, these are still being considered rather than something that’s imminent. That being said, the report notes the situation as nothing “is off the table” when it comes to the future of Xbox. This is despite the seemingly good press that current Xbox CEO Asha Sharma is getting, with the decisions she has made since taking over the role despite her history not exactly suggesting a good fit.
In recent times, there have been many reports of Microsoft taking pretty drastic measures to “encourage” better financial performance from its videogames division. Previously, one Bloomberg report suggested that a 30% profit margin was mandated. Though the company has later said that the 30% figure was inaccurate, without providing an exact number.
(Source: The Information via The Verge)
