Microsoft Xbox faces mounting losses and exclusive‑game strategy rumors

Microsoft’s Xbox division is reportedly losing hundreds of dollars on every console sold, with year‑over‑year hardware sales down by almost a third and declining revenue from games and services. The company is said to be weighing several options, including turning the Xbox unit into a subsidiary, spinning it off or even preparing it for a possible sale, though no official decision has been announced.

Amid these financial pressures, Microsoft has denied circulating rumors that it would abandon its exclusive‑game strategy. Xbox senior director Matthew Ball publicly stated, “there are no conversations … to reverse course” and affirmed that Xbox will continue to deliver exclusive titles each year.

Separately, French developer Don’t Nod warned it could run out of cash by November after its part‑owner Tencent declined to increase funding. The studio may face layoffs or shutdown of projects such as Aphelion and Jusant. The announcement comes as Microsoft has begun cutting heads across Xbox Game Studios following the resignation of studio head Craig Duncan, adding further uncertainty to the broader gaming ecosystem.