Microsoft is exploring options to reorganize its Xbox gaming division, including a possible spin-off into a separate subsidiary wholly owned by the corporation, The Information reported, citing sources; its publication is quoted by Reuters.

LinkedIn and GitHub could serve as possible models for Xbox: Microsoft fully owns them but runs them as separate companies. A joint venture with partners is also being discussed, which could eventually facilitate the sale of the gaming business, The Information sources said. A final decision on the restructuring has not yet been made, they claim.

The Information's publication came after Bloomberg's June 10 report that Xbox is preparing large-scale staff cuts and a significant reduction in marketing and other expenses. These measures could become the first major overhaul of the gaming division under the new leadership, the agency noted.

Xbox has faced difficulties in recent years: Microsoft’s bet on the subscription gaming model Game Pass and cloud gaming Xbox Cloud has not been able to offset declining console sales and a shortage of major game releases, Reuters writes.

Ash Sharma, who took over Xbox in February, intends to increase investment in developing new games for the company’s biggest franchises, including Halo, Fallout and The Elder Scrolls. Microsoft CEO Satya Nadella and CFO Amy Hood have already approved increased spending on large‑scale game projects for the fiscal year that begins in July, although the final budget has not yet been approved, Reuters notes, citing The Information.

Xbox will need to rebuild its platform infrastructure and rethink its portfolio in the coming weeks and months, Sharma said in an open letter published on June 10. Over the past five years, the business’s revenue has fallen by almost $500 million despite more than $20 billion in investments in content, platform and hardware. The company is also revising its development strategy: Xbox intends to place a stronger emphasis on exclusive games, foregoing the release of some future titles on PlayStation and Nintendo. The Xbox head also noted that the company is affected by a component crisis: prices for parts have doubled since she took the position. Despite this, the company still plans to launch a next‑generation console called Helix.