Microsoft may spin off, sell, or restructure Xbox after margins fell to 3%. Major layoffs planned for July. No decision is imminent.
Microsoft has not ruled out spinning off its Xbox division into a separate company. The Information reported that options under consideration include turning Xbox into a wholly owned subsidiary, forming a joint venture with outside partners, or selling the business outright. No decision is imminent, but new Xbox CEO Asha Sharma and Microsoft CEO Satya Nadella have left everything on the table.
The background is financial. Xbox’s profit margins collapsed to 3% this fiscal year. The division spent more than $20 billion on content, platform, and hardware subsidies over the past five years while annual revenue declined by nearly half a billion. Microsoft is also planning major layoffs in July, with significant cuts to marketing and other budgets.
Structuring Xbox as a subsidiary would mirror how Microsoft treats LinkedIn and GitHub, both of which operate with their own leadership and brand identity. A joint venture or sale would be more dramatic, effectively ending Microsoft’s two-decade run as a console platform owner.
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Sharma, who took the role in February, has secured approval to invest heavily in tentpole franchises. Halo has not had a new release since 2021. The last mainline Fallout was Fallout 4 in 2015. She has also confirmed that Gears of War: E-Day and Clockwork Revolution will be Xbox exclusives, reversing the company’s recent trend of putting games on competing platforms.
That investment in blockbuster titles is likely to come at the expense of smaller studios and games that failed to meet sales expectations. Microsoft and Meta have been converting payroll into AI capital expenditure across the company. The question is whether Xbox can justify its resource demands when the rest of Microsoft is generating margins many times higher from cloud and AI.
A spinoff would also reframe the $69 billion Activision Blizzard acquisition. Microsoft completed that deal in 2023 to strengthen Xbox. If the division is sold or separated less than three years later, it would raise questions about whether the acquisition thesis ever held up.
For now, Sharma’s strategy appears to be a last attempt to make Xbox work inside Microsoft: cut costs aggressively, focus on the biggest franchises, and prove the unit can generate returns. If that does not work, the structural options being discussed suggest Microsoft’s leadership is prepared to let Xbox go.
I’ve driven a lot of EVs lately, and many of them seem obsessed with feeling futuristic at all costs. Some are great tech showcases, but not all of them are particularly easy to live with day to day.
The 2026 Polestar 3 Dual Motor Performance is different because it doesn’t lean into that over-the-top EV personality. It feels like a proper luxury SUV first, and an electric vehicle second.
With 680 horsepower on tap, it’s seriously quick when you want it to be. But the real story is how normal it feels when you’re just going about daily driving.
Pros
Cons
Feels more like a normal luxury SUV than a typical EV
Strong performance
Excellent interior quality
Firm ride
Smaller cargo space than rivals
Expensive options that put the price up quickly
A luxury SUV first, an EV second
It behaves more like a traditional premium SUV than a futuristic EV
The first thing you notice about the 2026 Polestar 3 is how little it tries to act like a typical EV. It doesn’t lean on gimmicks or exaggerated futuristic styling cues.
Instead, it feels like a well-sorted luxury SUV that just happens to be electric. That approach instantly separates it from much of the competition.
The steering feels natural, and the ride is controlled without feeling overly soft or disconnected. It avoids the detached “floating tech pod” sensation that some EVs still struggle with.
Even in Performance trim, it never feels dramatic for the sake of it. Everything is tuned around calmness and everyday usability.
This EV SUV surprised me—it’s packed with space and comfort, even if the drive itself is a bit mellow.
A driving position that feels more focused than expected
Lower, tighter, and more engaging than a large SUV has any right to be
Credit: Adam Gray | How-To Geek
You sit lower in the Polestar 3 than you might expect for a large SUV. That gives it a slightly cocooned driving position that feels more focused than most rivals.
At first, it almost feels like you’re in something smaller and more sports-oriented. That illusion works especially well in everyday driving.
But the reality check comes when you push harder. The weight shows up under braking and reminds you what this really is.
Most functions are handled through a large central touchscreen running Google’s system. It looks excellent, but it takes time to get used to.
Core controls like drive settings and climate adjustments aren’t instantly accessible. It keeps the cabin visually clean but less immediate in use.
There are also quirks like relocated rear window switches and unlabeled steering wheel buttons. They don’t ruin the experience, but they do take time to learn.
BMW has just revealed its all-new 2026 iX3, a sleek electric SUV designed to rival Tesla with cutting-edge tech, bold design, and impressive range.
A surprisingly roomy and practical luxury SUV
Family-friendly space despite the coupe-like profile
Credit: Adam Gray | How-To Geek
Rear seat space is one of the Polestar 3’s strongest points. The five-seat layout allows generous legroom throughout.
Even taller passengers won’t struggle for space in the back. Headroom is slightly limited by the sloping roofline, but it doesn’t feel restrictive.
Cargo space is average for the class, with a shallow load floor and raised cargo area. You also get underfloor storage plus a small frunk for charging cables and small items.
Polestar has removed most physical controls in favor of a screen-first interior. That keeps the design clean but increases the learning curve.
The 14.5-inch display looks sharp and responds quickly, but key functions often take more steps than expected. Even simple adjustments aren’t always immediate.
It reinforces the modern EV feel, but it also highlights the tradeoff. This is where the “normal SUV feel” starts to give way to full EV complexity.
Hyundai’s flagship three-row EV gets a darker Black Ink makeover and the kind of upscale feel you’d normally expect from far pricier SUVs.
What’s new for 2026
A technical overhaul that fixes early shortcomings
Credit: Adam Gray | How-To Geek
The Polestar 3 had a difficult start to life, with delays and early software issues affecting its rollout. This update feels like the version it should have launched as.
The biggest change is the switch to an 800-volt electrical architecture. That brings much faster charging speeds and shorter stops on compatible fast chargers.
All versions also get new batteries and updated in-house motors. The lineup has been simplified into three clearer variants based on powertrain.
The Dual Motor Performance model now produces 680 horsepower. Despite that, it still feels more like a relaxed luxury SUV than a performance machine most of the time.
You should avoid these cars new, but used examples are a bargain.
Pricing and what you actually get for the money
Expensive, but it feels properly equipped before options get involved
Credit: Adam Gray | How-To Geek
The 2026 Polestar 3 starts at £71,540 ($91,000), rising to £79,540 ($101,000) for the Dual Motor and £87,040 ($111,000) for the Performance. That puts it firmly against the BMW iX and Mercedes EQE SUV rather than mainstream electric SUVs.
Standard equipment is strong across the range, with 20-inch alloy wheels, a 14.5-inch portrait touchscreen, a Bowers & Wilkins sound system, and a full suite of driver assistance tech. It feels well-equipped even before options enter the conversation.
Move up to the Dual Motor and you get dual-chamber air suspension and subtle Swedish gold detailing. The Performance model adds significant power, revised chassis tuning, gold Brembo brake calipers, and gold seatbelts.
Where costs rise is options. Paint starts at £1,000 ($1,270), while Bridge of Weir leather upholstery costs around £3,900 ($4,950).
Even so, it feels more complete out of the box than many rivals in this segment. The base price is high, but it doesn’t feel stripped back or artificially entry-level.
Subaru’s new three-row EV packs 420 horspower, real off-road chops, and enough space for the whole family—without feeling boring.
How-To Geek’s take
An EV that finally behaves like a normal car first
Credit: Adam Gray | How-To Geek
The updated Polestar 3 doesn’t try to reinvent what an electric SUV should be. Instead, it focuses on feeling familiar, calm, and easy to live with.
It still has compromises, including a firm ride and heavy touchscreen reliance. But it avoids the overly futuristic feel that turns some drivers away from EVs entirely.
That’s what makes it work. It feels like an electric SUV for people who don’t usually like electric SUVs, and it commits to that idea from start to finish.
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