To be fair, this is what Microsoft wanted in the first place. Sometimes during investor calls, investors told Microsoft to either shut down Xbox division or "sell" Xbox. That's what they're doing, but the thing is, they need to this when it's a valuable time to do it. They want to test their hypothesis on Project Helix before a "go" is final. Just be ready when Microsoft sells "Xbox" to someone. They already spun the "Microsoft Gaming" company into "Xbox."
"Under Sharma's leadership, several large-scale changes were made to the division. She rebranded the division as simply "Xbox" in April 2026 along with new logos."
Xbox Games Studios is simple a publishing label, like Activision publishing.