A new report has claimed Xbox CEO Asha Sharma is speeding up development on new The Elder Scrolls, Fallout, and Halo games as Microsoft considers restructuring or spinning off its gaming branch.
Details on the potential shakeup come from The Information (via Reuters), which reported on the latest in a long line of recent shifts at the company. It says that, according to three of its sources, Microsoft hasn’t ruled out turning the brand into a wholly-owned subsidiary.
It’s said the move could result in Xbox being operated as a joint venture with other partners or even potentially sold. Though how seriously the company is considering the potential strategy is unclear, it’s reported that Microsoft currently has no imminent restructuring plans. Should such a move happen, it would fundamentally change not only one of the big three console manufacturers but the industry as a whole.
However, the move could theoretically still allow the 25-year-old gaming branch to operate within the company, just with a bit more distance from the greater Microsoft umbrella. The Information noted that, if the company were to move forward with a restructuring, it could follow the path paved by LinkedIn and GitHub, which it also operates as wholly owned subsidiaries. For now, Microsoft’s goal is simply to make Xbox a more successful part of its business.
Meanwhile, Sharma is also said to be pushing development on core franchises like Halo, The Elder Scrolls, and Fallout, with the latter two being of particular interest for the Xbox boss. There’s no word on how exactly Microsoft intends to allocate resources to speed up the process of delivering new games in each series or when new installments would be intended to launch.
It’s also unclear if the move would result in the fast-tracking of long-awaited mainline entries like The Elder Scrolls 6 or Fallout 5, specifically, or, maybe, spin-offs or remasters, such as the rumoured Fallout 3 remaster. These are all titles Xbox publisher Bethesda Softworks has talked about in the past without assigning any sort of release date, meaning they could still be many, many years away, even if they are prioritized.
The Information reports that Microsoft CEO Satya Nadella and Chief Financial Officer Amy Hood have given Sharma the green light for extra spending when it comes to bringing big games to Xbox this fiscal year. However, the site’s sources say the budget could be changed.
The report emerges at a turbulent time for Xbox. Fans of the green gaming brand celebrated its Xbox Games Showcase 2026 this past weekend after it managed to deliver big announcements for games like Gears of War: E-Day, Fable, and Spyro: A Realm Beyond.
The days that followed, however, have been met with confusion, as fans questioned its commitment to exclusive titles thanks to new reports and leaked Gears of War art featuring a PS5 logo. Xbox also outlined its plans to “reset” its gaming wing while warning of impending July layoffs just days ago.
Michael Cripe is a freelance writer with IGN. He’s best known for his work at sites like The Pitch, The Escapist, and OnlySP. Be sure to give him a follow on Bluesky (@mikecripe.bsky.social) and Twitter (@MikeCripe).
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