All-new XBOX controller and console to release this year, amid rumours Microsoft could spin off PS5 rival

The last few days have been an emotional rollercoaster for longtime XBOX fans.

The Microsoft-owned gaming brand just wrapped up its latest Games Showcase — the first keynote from newly-appointed CEO Asha Sharma, who also rebranded her dvision from "Microsoft Gaming" to "XBOX", officially stylised in all-caps for the first time — where it announced a slew of new titles, including a fresh look at the Fable reboot, the incoming Halo: Campaign Evolved remake, Gears of War: E-Day, Persona 6, Spyro: A Realm Beyond, Call of Duty: Modern Warfare 4, and Senua, to name just a few.

All of these titles will be coming to XBOX Game Pass, the Netflix-like subscription that lets you stream and download all titles from Microsoft-owned studios. Ahead of the Games Showcase, it was slashed in price after Asha Sharma admitted it was "too expensive".

But that's not all.

The company also introduced the XBOX Series X25 Limited Edition console – a limited edition design to mark the quarter-century since XBOX first arrived on the scene. Its fresh look pays tribute to those early days with a transparent fluorescent green case that lets you peer inside to see the inner workings of the console.

When you power up the X25 console, the iconic X icon illuminates in that same trademark green — a nod to how the original XBO booted up all those years ago. The console retains the full power and performance of the standard XBOX Series X, complete with 1TB of built-in storage, so you won't have to sacrifice anything for style.

The designers at Microsoft have emblazoned the console with an XBOX 25th Anniversary logo on the front, and have promised that longtime XBOX fans will find several hidden surprises tucked away in the case too.

Accompanying the console is the XBOX Wireless Controller X25 Special Edition, which sports that same translucent green aesthetic that'll appeal to long-time fans. It boasts the same colourful A, B, X, and Y buttons as the original controller that shipped with the XBOX — nicknamed The Duke for its cumbersome size — while the bumpers draw inspiration from the black and white buttons found on the predecessor 25 years ago.

You can pick up the controller bundled together with the X25 console when both arrive in November, or if you prefer, the controller will be available to purchase as a standalone too. There's no word on a UK price tag for either, but we'd expect availability to be extremely limited. XBOX usually charges £59.99 for its wireless controllers.

CEO Asha Sharma delighted attendees at the XBOX FanFest LA event, where the company screened its Games Showcase on a cinema screen, by appearing on-stage in-person to thank longtime fans for their support.

The exec. said: "Well, this is my first showcase, and I know that so many of you have been here with us for the last 25 years, so if you look down and you have "fan" on your badge, you'll be getting one for free later this year."

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In clips of the moment, the XBOX screening audience erupts into cheers.

Ms Sharma also confirmed that two of the titles announced during the Games Showcase — Clockwork Revolution and Gears of War: E-Day — will be exclusive to XBOX consoles, bypassing a release on PlayStation 5. This was significant because XBOX has spent years moving away from console exclusives, releasing its flagship titles across PlayStation and Nintendo Switch.

By confirming that Gears of War: E-Day and Clockwork Revolution are true XBOX exclusives, Asha Sharma signalled a renewed commitment to XBOX hardware, offering players a definitive reason to buy an XBOX console over the competition.

But no sooner had XBOX players heard the good news, whispers circulated that parent company Microsoft was looking at a variety of options to restructure its gaming business, including spinning off XBOX.

Sources speaking confidentially to The Information flagged how drastic options haven't been "ruled out", including turning XBOX into a wholly-owned subsidiary beneath Microsoft or creating a "joint venture with other partners".

"As Microsoft gets ready to overhaul its struggling XBOX gaming unit, it hasn't ruled out spinning out or restructuring the unit as a wholly-owned subsidiary, which could make it easier to sell, or creating a joint venture with other partners, according to three people with direct knowledge of the discussions," the report claims. "Microsoft doesn't have any imminent restructuring plans, but those options are on the table, the people said."

If you're not au fait with terms like “spinning out” or “wholly-owned subsidiary,” this is basically about whether XBOX could become its own company, either still fully owned by Microsoft or separated in some other way.

For comparison, Sony Interactive Entertainment — the multinational brand responsible for the PlayStation brand — is a wholly-owned subsidiary of Sony Group Corporation, the parent company behind Sony Smart TVs, smartphones, camera sensors, film and television, music, and more.

According to the same report from The Information, XBOX is planning to spend more and move faster on new games from major franchises like Halo, Fallout, and The Elder Scrolls to capitalise on the success of these brands. At the same time, Bloomberg reports that several XBOX-owned studios are facing an uncertain future, with Compulsion Games, Double Fine, and Ninja Theory all said to be exploring ways to regain their independence from XBOX rather than risk being shuttered to save cash.

Other studios may also be affected, although none have been officially named. The reports come amid XBOX CEO Asha Sharma’s wider business reset, which is expected to include budget cuts, layoffs and a major shake-up of the company’s structure. If accurate, it would mark one of the biggest changes to XBOX in years.

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