We’ve been following a report that, if true, could reshape how Xbox operates and how quickly major Bethesda franchises return. Per The Information and reported by VGC, Microsoft is reportedly weighing major structural changes to its gaming arm while also approving stepped-up spending to accelerate development on tentpole series like Fallout and The Elder Scrolls.
What Was Reported
According to The Information and relayed by VGC, Microsoft “hasn’t ruled out” making Xbox a separate entity — either spinning it out as a wholly owned subsidiary, restructuring it, or even forming a joint venture with other partners. The idea, allegedly, is to give Xbox more autonomy over budgets and strategy and to make a future sale easier if needed. The report also notes Microsoft already operates LinkedIn and GitHub as wholly owned subsidiaries.
The same reporting claims that Satya Nadella and Amy Hood have approved a plan from Xbox leadership to “spend more on top-tier games” in the coming fiscal year beginning in July. Specifically, Xbox is said to “move faster” on developing new entries in its biggest franchises, with an emphasis on Fallout and The Elder Scrolls, and with particular interest in those two from Xbox’s new leadership.
Other claims in the report include that Bethesda hasn’t released new mainline Fallout or The Elder Scrolls games in over a decade, and that Xbox’s games boss recently said he’d seen The Elder Scrolls 6 running and that it “looks amazing.” The reporting follows a week of concerning stories for Xbox, including claims it could shut down one of its studios as part of expected significant cuts reportedly taking place next month.
The Source & Credibility
VGC’s story is driven by reporting from The Information. The Information’s sources reportedly said, “Microsoft doesn’t have any imminent restructuring plans, but those options are on the table,” and, “Nadella and Hood haven’t ruled out restructuring Xbox’s relationship to Microsoft at some point in the future if doing so would make Xbox a more successful business, the people said.” Take this with a pinch of salt: the language used indicates these options are being discussed internally rather than confirmed decisions.
What We Know From The Report
- The Information is cited as the origin of the claims.
- VGC is reporting on The Information’s claims.
- The report quotes unnamed sources saying restructuring is an option but not imminent.
One small note on names in the coverage: the report refers to a “new CEO Asham Sharma” and also references a note to staff from “Xbox CEO Asha Sharma.” We’re relaying the names as they appear in the reporting rather than attempting to reconcile the spellings ourselves.
What It Could Mean
If what’s been reported is accurate, there are two threads to watch: corporate structure and creative output. On the corporate side, making Xbox a wholly owned subsidiary or a joint venture would, per the report, allow Xbox to set its own budgets and strategies more independently of Microsoft. That autonomy, if granted, could alter how quickly major spending decisions are made.
On the creative side, The Information reportedly says Microsoft leaders have approved plans to increase spending on top-tier games and to “move faster” on franchises including Halo, Fallout, and The Elder Scrolls. If true, that could mean accelerated development resources for those series — though the report itself doesn’t spell out timelines or specific projects.
There’s also a human angle in the reporting: the note shared internally by Xbox leadership reportedly outlined financial realities — including a claimed decline in annual revenue of nearly half a billion over five years, hardware costs rising “4x” since last year, and an “overextended” studio system. Those are serious internal challenges that, according to the report, are motivating the reset.
Why This Matters
Take this with a pinch of salt, but if Microsoft truly approves faster activity on Fallout and The Elder Scrolls while contemplating a change in Xbox’s corporate structure, it could have ripple effects across studios, budgets, and how players see the future of those franchises. We’re intrigued and sceptical in equal measure: the reporting suggests ideas are on the table rather than locked in.
We’ll keep digging. For now, the key things to remember are that this is based on reporting from The Information as carried by VGC, that restructuring options are described as possibilities rather than confirmed plans, and that leadership has allegedly approved higher spending on top-tier games with an aim to “move faster” on Fallout and The Elder Scrolls. If true, that would be a major development for long-waiting fans — but until we see concrete moves from Microsoft or Xbox, treat these claims as a major rumour worth watching closely.
