Back to today’s briefing

Story perspectives

Microsoft Mulls Xbox Spin-Off, Approves $500 M Franchise Spend

6/15/2026

41 9 Full Breakdown

Summary

Microsoft Spins Off Xbox

Microsoft Corp. is weighing a spin-off of Xbox into a subsidiary, with no imminent timetable and the option on the table.
Xbox CEO Asha Sharma received approval from CEO Satya Nadella and CFO Amy Hood to boost spending on franchises in July.
Xbox CEO Asha Sharma reported a $500 million revenue drop over five years and hardware costs four-fold.
Xbox chief content officer Matt Booty said The Elder Scrolls 6 is playable.

Summary

Xbox Plans Layoffs

Xbox plans roughly 1,000 layoffs in July, according to Bloomberg and Giant Bomb.
The internal memo warned staff of a 100-day reset and new cost realities.
Component costs for 2027 holiday consoles are projected to exceed five times 2025 prices.
Microsoft floated a LinkedIn-style plan to keep Xbox owned but give it an operational rhythm.
Sharma and Booty said the hardware cost crisis forces a shift from the low-margin console model.

History

Historical Context

Microsoft’s 2013 announcement to buy Nokia’s mobile division for €5.4 billion, completed in April 2014, sparked a wave of layoffs—over 7,800 jobs in 2015 and a $7.6 billion write-down. Former Nokia chief Stephen Elop then led Microsoft Devices, while Satya Nadella shifted focus to software services. Today Xbox head Asha Sharma and content chief Matt Booty plan a spin-off and 1,000 layoffs, echoing that restructuring.

1 of 3

Microsoft Spins Off Xbox

Microsoft Corp. is weighing a spin-off of Xbox into a subsidiary, with no imminent timetable and the option on the table.
Xbox CEO Asha Sharma received approval from CEO Satya Nadella and CFO Amy Hood to boost spending on franchises in July.
Xbox CEO Asha Sharma reported a $500 million revenue drop over five years and hardware costs four-fold.
Xbox chief content officer Matt Booty said The Elder Scrolls 6 is playable.

1 / 3