Microsoft Considers Strategic Reorganization of Xbox
Microsoft is evaluating several scenarios to reorganize its Xbox video game business, according to reports from The Information. Among the options on the table is a potential spin-off of the business or its transformation into a wholly owned subsidiary. Other paths, such as the creation of a joint venture with external partners, are also reportedly being studied as part of a broader strategic review regarding the division's future.
The proposed reorganization could, in the long term, facilitate an eventual partial or total divestment of the business. However, no decision has reportedly been made at this stage, and no immediate action is expected in the short term. Discussions remain exploratory, according to sources cited by the media outlet.
This strategic review comes as Microsoft has significantly bolstered its presence in the video game sector in recent years through several major acquisitions. The Xbox division currently encompasses Xbox consoles, the Game Pass subscription service, and numerous development studios. The group declined to comment on the reports.
Microsoft Corporation is the world's leader in the design, development and marketing of operating systems and software programs for PC's and servers. The group also builds and sells computer equipment. Net sales break down by activity as follows:
- sale of operating systems and application development tools (42.9%): primarily for servers (Azure, SQL Server, Windows Server, Visual Studio, System Center, GitHub, etc.) and (Windows);
- development of cloud-based software applications (37.7%): programs for productivity (Microsoft 365; Word, Excel, PowerPoint, Outlook, OneNote, Publisher and Access), integrated management and customer relationship management (Dynamics 365), online file sharing and management (OneDrive), and unified and collaborative communications (Microsoft Teams);
- other (19.4%): primarily sale of software licenses (Windows), tablets (Microsoft Surface), video game consoles and software (Xbox), computer accessories, etc.
The United States accounts for 51.3% of net sales.
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