Could Microsoft Spin Off Xbox?

Some big changes could be coming for Xbox over the remainder of 2026. Find out the details below. Also, Nintendo showed off quite a few new games and updates at their most recent Direct. All this and more. Let’s go!

A huge Nintendo Direct

Nintendo held their June Direct that featured details on nearly 50 games. Many are titles that are already available on other systems, but the company also showed off some new titles and provided updates on games in development. Here are the top announcements:

Kingdom Hearts 4

After 4 years since the web last saw an update about Kingdom Hearts 4, it shows up on Nintendo’s virtual stage. The game is expected to release in 2027. 

Fire Emblem: Fortune’s Weave

The latest Fire Emblem game gets a release date - September 17 for the Switch 2. 

Xenoblade Genesis

Nintendo plans to reboot the Xenoblade franchise with a new game that promises “a new beginning for the series.” Xenoblade Genesis is expected in 2027. 

Final Fantasy Resonance

A brand new Final Fantasy game that utilizes a high definition 2D art style. Final Fantasy Resonance arrives on Switch (along with other platforms) October 22. 

The Legend of Zelda: Ocarina of Time

After rumors leaked about the remake of this classic, Nintendo decided they needed to put something out.

Other announcements include One Piece: Grand Gourmet, an expansion for Pokémon Pokopia, Switch 2 editions of the Xenoblade Chronicles games and a new Dragon Quest Monsters game. Check out everything announced at the event.

Could big changes be coming at Xbox?

Xbox could be making some substantial adjustments over the second half of 2026.

In a memo sent to Xbox staff, CEO Asha Sharma says the company needs to “reset the business” over the next 100 days. What that means is unclear, but most anticipate it means major layoffs are coming (again) to Xbox-owned studios. 

One plan Xbox wants to pursue is fast-tracking new games in their top franchises, including Elder Scrolls, Fallout, and Halo. Another idea that has reportedly been discussed internally involves Microsoft spinning off the Xbox division. According to Reuters, Xbox would become a fully-owned subsidy, similar to what Microsoft has done with LinkedIn and GitHub. They could also potentially sell the Xbox division entirely.  

The next 100 days will be crucial in determining what’s next for Xbox. Some additional notes from the company this week:

• Xbox says they are exploring “radically different business models” to make their next console more affordable thanks to the memory crisis Microsoft helped create.  
• Xbox chief strategy officer Matthew Ball says Game Pass lost “millions of subscribers” when Microsoft raised the price by 50% last year. 
• After announcing Gears of War: E-day and Clockwork Revolution will be Xbox and PC exclusive, Xbox says exclusivity will be determined on a “case by case basis.”
• Microsoft CEO Satya Nadella complained about low profits from their gaming division, saying “there’s more monetization of Xbox games happening on YouTube than at Microsoft.”
• Xbox chief content officer Matt Booty provided an update on why Blade and Elder Scrolls 6 were not shown at the recent Xbox showcase.

Side Quests (more stories worth reading)

🎞️ Check out our latest Game Trailer Friday, featuring some of the smaller games announced last week.

🗓️ Final Fantasy VII remake director Naoki Hamaguchi says retaining staff and having a clear vision are the reason they were able to make the final game in the series in three years. 

📱 A player from Brazil was named Candy Crush All Stars tournament champion. 

💶 Nintendo of Europe will pay a $40 million fine for misleading customers about Joy-Con drift.

💳 Valve says they will stop selling physical Steam gift cards due to scammers. 

👎🏼 Ubisoft is reportedly closing two studios and cutting nearly 400 jobs. 

🏳️‍🌈 The 2026 Gayming Awards took place, with South of Midnight winning Game of the Year and Date Everything winning the fan favorite award. 

🖥️ The servers for Grid Legends will shut down September 11 of this year. 

🧑🏾‍💻 The Entertainment Software Association (ESA) warns that the No Fakes Act working its way through Congress “poses a real threat to existing games and to the future of US game development.”

‼️ A copy of Super Mario Bros. sold at auction for a record $3 million. 

🏢 A former Destiny community manager said that Bungie was “very close to shutting its doors” before the company was acquired by Sony. 

🛩️ Player data from Pokémon Go may be used to help train military drones.

New Releases this week: 

Check out our article on 8 games to play in June. 

6/18: Dave the Diver - In the Jungle Expansion (PlayStation, Xbox, Switch and PC)
6/18: R-Type Tactics I • II Cosmos (PlayStation, Xbox, Switch and PC)
6/18: The Adventures of Elliot: The Millennium Tales (PlayStation, Xbox, Switch and PC )
6/19: EA Sports UFC 6 (PlayStation and Xbox)

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