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Looking ahead: Since taking over Xbox earlier this year, Asha Sharma and Matt Booty have hinted at radical changes in the coming weeks to turn Microsoft's struggling game console business around. New reports indicate that little is off the table, including steps that could lead to a sale of the division.

People familiar with the matter told The Information that Microsoft executives have not ruled out restructuring Xbox as a wholly owned subsidiary or even a joint venture. Although no such plans are currently in place, they remain a possibility.

If doing so would turn Xbox's fortunes around, Microsoft could reorganize the division into something resembling its other subsidiaries, such as LinkedIn and GitHub. The tech giant could also find a partner to run Xbox as a joint venture or spin the division out. As the news spread, former PlayStation CEO Shuhei Yoshida rather pessimistically predicted that Xbox would "dissolve" into Windows, possibly referencing Microsoft's plans for the next Xbox console, codenamed Helix, to support PC games.