Microsoft Accelerates Development of Fallout and Elder Scrolls Amid Potential Xbox Spin-Off

Microsoft is accelerating the development of its biggest gaming franchises, including Fallout and The Elder Scrolls, while exploring the possibility of spinning Xbox off into its own separate company.

This dramatic pivot includes a massive cash injection for top-tier games, as Microsoft CEO Satya Nadella and Chief Financial Officer Amy Hood have approved a plan to heavily increase spending on flagship franchises starting this July.

For gamers, the immediate benefit of this corporate shakeup is an end to the long waits between major releases. Following the global success of Amazon's Fallout TV show, new Xbox CEO Asha Sharma has approved a plan to move much faster on Halo, Elder Scrolls, and Fallout.

Behind the scenes, Microsoft is weighing options to fix Xbox's underlying structural issues, including restructuring the gaming division into a wholly-owned subsidiary or forming a joint venture with outside partners.

This potential reorganization comes at a turbulent time for Xbox, which has been weighed down by stalling Game Pass subscriptions and declining console sales. In a memo sent to staff, Sharma laid out the harsh realities the team must navigate during this 'reset' period.

To course-correct, Microsoft is preparing to execute major layoffs and marketing cuts this coming July, capping off a brutal week of news for Xbox, which includes rumors of impending studio closures.