Microsoft is considering a strategic pivot for its Xbox division, which may include spinning it off into a standalone entity or transforming it into a wholly-owned subsidiary. There are discussions about a potential joint venture with unnamed partners to facilitate a smoother sale of Xbox. The company is focusing its resources on its most prominent gaming titles while facing challenges, including the possibility of job losses for hundreds of employees. Anticipated game releases like Fallout 4 and The Elder Scrolls VI have left fans waiting for updates, and the Halo franchise has seen stagnation since the establishment of 343 Industries. Halo Infinite's content updates ceased in 2025, four years after its launch. Microsoft has not yet made immediate changes but is exploring a broad range of options for the future of Xbox.