Microsoft Plans Xbox Job Cuts While Approving Higher Spending on Halo and Fallout

Microsoft is preparing to cut a substantial number of positions in its Xbox division while reviewing the future of its next-generation Project Helix console. The company is also examining structural changes that range from making Xbox a wholly owned subsidiary to forming a joint venture or spinning the business off entirely, with a possible sale under consideration.

The Verge reported that nothing is imminent.

A report from The Information said new Xbox CEO Asha Sharma and Microsoft CEO Satya Nadella have kept every option open. Sharma has received approval to increase spending on major franchises. The investment will focus on tentpole titles including Halo and Fallout.

The last mainline Fallout game, Fallout 4, was released in 2015. Sharma stated that the upcoming Gears of War: E-Day and Clockwork Revolution will remain Xbox exclusives. The heavier spending on established series is expected to reduce resources for smaller studios whose titles have not met sales targets.