Microsoft is considering options for its Xbox gaming business, including a potential spinoff or a restructuring as a wholly owned subsidiary, according to a report from The Information.

The company is also weighing a joint venture with outside partners as part of a broader overhaul that could make the gaming unit easier to sell later, the report said.

No restructuring is imminent, but the discussions show how far Microsoft may be willing to go as Xbox struggles to regain momentum.

The gaming unit has faced pressure from falling console sales, limited blockbuster releases, and a subscription strategy that has not fully offset weakness in hardware. Microsoft’s bet on cloud gaming has also failed to deliver the scale needed to change the trajectory of the business.

A subsidiary structure could follow the model Microsoft already uses for LinkedIn and GitHub, both of which operate as wholly owned subsidiaries while remaining inside the company.

Asha Sharma, who became chief executive of the gaming unit in February, is preparing a broader reset. She plans to increase spending on major franchises including Halo, Fallout, and The Elder Scrolls, according to the report.

Microsoft CEO Satya Nadella and finance chief Amy Hood have approved Sharma’s plan to boost investment in top tier game development for the fiscal year starting in July, though the final budget has not been completed and could still change.

The possible restructuring comes as Xbox is also preparing major layoffs and cuts to marketing and other budgets. Those cuts are expected after Microsoft’s fiscal year ends on June 30.

The combination points to a sharper strategic split inside Xbox. Microsoft appears willing to spend more on its strongest franchises while reducing costs elsewhere and reassessing whether gaming should remain organized as a traditional internal division.