Key Highlights:
- A new report claims Microsoft has discussed making Xbox a separate subsidiary, potentially making a sale easier.
- Another report alleges Xbox is losing hundreds of dollars on each Series X and Series S console sold.
- No official confirmation has been provided by Microsoft, and the claims should be treated cautiously.
A new report has sparked speculation about the future of Xbox, with claims suggesting that Microsoft may be exploring options that could eventually make the gaming business easier to sell.
According to The Information, Microsoft has discussed restructuring Xbox into a wholly owned subsidiary. The report, which cites anonymous sources, claims this would make the division easier to separate from Microsoft if the company ever chose to pursue a sale.
At present, there has been no official confirmation from Microsoft, and the report should be viewed with caution. However, the suggestion alone has generated significant discussion across the gaming industry due to the scale of what such a move would represent.
Xbox has been part of Microsoft since the brand launched in 2001. While the company has made major changes to its gaming strategy over the years, including high-profile acquisitions and a growing emphasis on multiplatform publishing, selling Xbox would represent one of the biggest shifts in the division’s history.
The report comes as new Xbox CEO Asha Sharma attempts to steer the business back into a stronger position following several difficult years. Microsoft has repeatedly stated its commitment to gaming and recently reaffirmed that it intends to remain in the console market, making the latest rumours somewhat surprising.
Adding further context to the speculation are recent claims surrounding Xbox hardware profitability. A report from Windows Central alleges that Microsoft is currently losing “hundreds of dollars” on every Xbox Series X and Series S console sold.
According to journalist Jez Corden, rising memory costs have severely affected manufacturing margins. The report claims memory prices have increased by around 700% since the current console pricing structure was established, making profitability increasingly difficult.
These challenges are not unique to Microsoft. Nintendo has reportedly been reassessing pricing around the Switch 2, while Sony has increased PlayStation 5 prices in several regions. Valve is also said to be evaluating costs surrounding its future hardware plans.
I think it is important to separate confirmed information from speculation. Microsoft selling Xbox would be an extraordinary decision, and there is currently no indication that such a move is imminent. Structuring Xbox as a subsidiary, if discussions have taken place, does not necessarily mean a sale would follow.
Still, with hardware margins under pressure and Microsoft’s gaming strategy continuing to evolve, it is easy to understand why reports like this are attracting so much attention.
For now, Xbox remains firmly under Microsoft’s ownership, and fans will likely be watching closely for any official response to the growing rumours.