Microsoft seems to be facing a very challenging dynamic in its effort of getting Xbox back on track. The gaming division is expensive, large, and doesn't generate nearly the same profit margins as Microsoft's other key business ventures, which is why we often hear all sorts of rumours about what could happen to Xbox down the line.
To this end, a report from The Information has claimed that Microsoft hasn't ruled out the idea of spinning off Xbox into its own wholly-owned subsidiary. The idea here is to enable Xbox to operate on its own motives without having Microsoft peering over its shoulder all the time. Essentially, it would be a separate business that simply worries about its own finances and not about how it contributes so directly to the Microsoft money-making machine, which is the same way that Microsoft treats both LinkedIn and GitHub, two other owned companies that operate as separate subsidiaries.
The report adds that such a massive change isn't in the immediate cards, but that Microsoft boss Satya Nadella and chief financial officer Amy 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".
What does seem to be in agreement already is that if Microsoft is going to see Xbox succeed, it needs to provide a reason for consumers to buy into its ecosystem and snag its products. To this end, the greenlight has supposedly been given on fast-tracking new major titles in its flagship franchises, namely Halo, Fallout, and The Elder Scrolls, the latter two which have been somewhat dormant for 15 and 10 years, respectively, with all emphasis placed on the multiplayer-centric options of The Elder Scrolls Online and Fallout 76.