Microsoft is weighing a spin-off for Xbox

Microsoft is preparing to lay off a significant chunk of its Xbox division and is reevaluating plans for its next-generation Project Helix console. A report from The Information says the company is considering dramatic restructuring — turning Xbox into a wholly owned subsidiary, a joint venture, or spinning it off entirely. They might even sell the business.

The report doesn't say anything is imminent. Microsoft is just laying the groundwork. But the options suggest the company is looking at Xbox differently now, trying to make the gaming division more sustainable after years of burning cash on studios and subscriptions.

Why this matters for us: whether Xbox stays under Microsoft's thumb or goes solo, the games we play and the workers who make them are about to get a shakeup.