Microsoft is reportedly reevaluating how it structures and funds its Xbox business, amid planned layoffs within the division and changes to its next-generation console plans. Multiple outlets, citing a report from The Information, say Microsoft has not ruled out spinning off Xbox into a separate entity and is considering several restructuring options. These options include turning Xbox into a wholly owned subsidiary, creating a joint venture with outside partners, or selling the business outright. The reporting also links the review to financial performance, with one outlet stating that Xbox margins have fallen to around 3%. The Information also describes broader efforts to “move faster” on releasing first-party games, alongside leadership changes: new Xbox CEO Asha Sharma is cited as being involved, along with Microsoft CEO Satya Nadella. No specific timeline or decision is reported, and outlets emphasize that outcomes have not been finalized. The company is also said to be preparing significant layoffs affecting the Xbox division and to be reconsidering aspects of Project Helix, its next-generation console initiative.