Seeing some people saying MS should/could spin off the Xbox division. Wouldn't that just mainly be the hardware side? I strongly doubt MS would want to give their gaming IP to a spinoff, or lock licensing rights exclusively to said spinoff.
Without the IP or a strong global hardware presence, an Xbox spinoff wouldn't be worth much, and I doubt Microsoft would pump that much funding into it. OEMs would likely lose interest in making hardware variants as a result, since they won't put in money Microsoft themselves wouldn't want to put into it. Unless these new Xbox devices really hit it out of the park and sell bucket loads, there's nothing much of value an Xbox spinoff with just the hardware could bring to the market.
It'd basically go the way of Turbo Technologies; a spinoff desperately hoping to push excess of hardware and getting little to no funding from the parent company because they can't produce a substantive profit, but part of the reason they're unable to produce a profit is because they don't have enough funding to sell the hardware. On and on it'd go, until the spinoff just shuts down. Plus, I imagine if these Xbox devices do in fact sell very well, Microsoft would be more inclined to keep the hardware side versus spinning it off into a separate entity.
MS should have simply kept every Activision game EXCLUSIVE to Xbox, yes it will hurt the bottom line for some time but will create tremendous value for Xbox for the long run.
They could have also worked on a rival platform to steam with all these games EXCLUSIVE to them. Thats a guaraneed +5m users for CoD alone.
If there was a company that can pull such aggressive strategy, its MS with their deep pockets.
I doubt any of that would've worked. ABK was just too big a purchase to try mass foreclosure strategies with. Zenimax? Sure. In fact, that was the plan initially with Zenimax and it could've worked if Starfied were a better game, if stuff like Deathloop & Ghostwire were Xbox exclusives at launch, if RedFall weren't a complete piece of shit etc. That might've given more leeway to make some of the ABK titles exclusive while doing early access/DLC content exclusivity on bigger IP like COD to Xbox vs. PlayStation. After all, regulators already said they didn't care about foreclosure of COD on PlayStation (well, the CMA and EC said that, anyway).
But since none of that happened, since other XGS games either flopped (Forza Motorsport, Hellblade II etc.) or went MIA (maybe even internally cancelled & rebooted, like with Everwild), since Halo Infinite was a disappointment and so on, all of that compounded into nullifying any real strategy to use ABK titles as leverage to push Xbox hardware exclusively. MS simply made too many mistakes in rapid succession so, by the time the deal looked like it was going to go through, they took off the kids gloves and put on the big boy pants. Had a
real talk about what could realistically be done given all the money sunk in the purchase.
And that's why they're doing what they're doing today.