Microsoft Has Considered Spinning Out Xbox, Plans New ‘Halo,’ ‘Fallout’ Games

As Microsoft gets ready to overhaul its struggling Xbox gaming unit, it hasn’t ruled out spinning out or restructuring the unit as a wholly-owned subsidiary, which could make it easier to sell, or creating a joint venture with other partners, according to three people with direct knowledge of the discussions.

Microsoft doesn’t have any imminent restructuring plans, but those options are on the table, the people said. While Xbox CEO Asha Sharma is planning significant layoffs and other cost cuts, she also plans to boost spending on new Xbox games from its most popular franchises to excite die-hard fans, these people said.