Xbox Reportedly Accelerating Development of New Elder Scrolls,

A new report has claimed Xbox CEO Asha Sharma is speeding up development on new The Elder Scrolls, Fallout, and Halo games as Microsoft considers restructuring or spinning off its gaming branch.

A recent report from The Information (via Reuters) suggests that Xbox CEO Asha Sharma is expediting the development of upcoming titles in The Elder Scrolls, Fallout, and Halo franchises. The report indicates that Microsoft is contemplating significant changes within its gaming division, including the possibility of transforming it into a wholly-owned subsidiary. While there are no immediate plans for restructuring, the potential move could have far-reaching implications for both Xbox and the gaming industry as a whole.

If Microsoft proceeds with restructuring, Xbox could operate independently or in partnership with other entities, or it might even be put up for sale. This strategic shift, similar to how LinkedIn and GitHub are managed as wholly-owned subsidiaries, aims to enhance Xbox's performance within the broader Microsoft ecosystem. Meanwhile, Asha Sharma is focusing on advancing key franchises like Halo, The Elder Scrolls, and Fallout, with a particular emphasis on the latter two. However, details on resource allocation and release timelines for new installments remain undisclosed.

The report also hints at the possibility of expediting the launch of highly anticipated titles such as The Elder Scrolls 6 and Fallout 5, or exploring options like spin-offs and remasters, including a rumored Fallout 3 remaster. These projects, previously discussed by Xbox's publisher Bethesda Softworks without confirmed release dates, could still be years away despite potential prioritization.

According to The Information, Microsoft's CEO Satya Nadella and CFO Amy Hood have approved additional funding for Sharma to facilitate the development of major titles for Xbox in the current fiscal year. However, sources suggest that budget allocations are subject to change. This news surfaces amidst a period of uncertainty for Xbox, following its recent Xbox Games Showcase 2026 event, which garnered attention for titles like Gears of War: E-Day, Fable, and Spyro: A Realm Beyond. Subsequent reports and leaked Gears of War art featuring a PS5 logo have raised questions about Xbox's commitment to exclusive content, while the company has outlined plans to restructure its gaming division and announced impending layoffs in July.