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Microsoft weighs an Xbox spinoff. Would it revive the business or put it at risk?

Fast Company Tech Chris Morris June 15, 2026
Microsoft weighs an Xbox spinoff. Would it revive the business or put it at risk?
AI Summary— plain English for professionals

# Microsoft May Spin Off Its Xbox Gaming Division as Losses Mount Microsoft is considering breaking Xbox off as a separate company because the gaming division has become a money-losing problem—the company spent $20 billion over five years on Xbox but actually made less revenue, not more. Hardware sales have plummeted 33%, and Microsoft's big bets on subscription and cloud gaming services haven't paid off the way the company hoped. The company is now weighing whether to keep Xbox as is, restructure it, or let it operate independently to try to turn things around.

Microsoft is reportedly considering a spinoff or restructuring of its Xbox gaming unit, as the division’s bets on subscriptions and cloud gaming have come up short and console sales have continued to decline. Sales of Xbox hardware were down 33% year over year, the company reported in its most recen

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