Several Xbox-owned studios are reportedly in negotiations to avoid closure as Microsoft prepares for a significant restructuring of its gaming division.
According to a report from Jason Schreier at Bloomberg, studios including Compulsion Games, Double Fine Productions, and Ninja Theory are exploring options that could see them spin off from Xbox and return to independent ownership.
Additional reports suggest the situation may be particularly serious for Ninja Theory. According to The Verge, staff at the studio were informed of a planned closure, though efforts are reportedly underway to secure a buyer. The news comes just weeks after the developer unveiled its new action-adventure title, Senua, during the Xbox Games Showcase.
Compulsion Games is also believed to be in discussions with Xbox leadership, although the exact nature of those negotiations remains unclear.
Bloomberg reports that any spin-off agreements could still result in substantial job losses, and Schreier later noted that the three studios named are not the only teams currently at risk. Wider layoffs are reportedly expected after Microsoft’s fiscal year ends on June 30.
The reports arrive amid growing uncertainty surrounding Xbox’s future direction. Earlier this month, Xbox CEO Asha Sharma published the internal memo “Next 100 Days: Xbox Reset,” describing rising hardware costs, declining profitability, and an “overextended” studio network that would require significant changes moving forward.
The situation became even more notable this week when Xbox Game Studios head Craig Duncan announced his departure from the company. According to Bloomberg, the decision was made shortly before the planned restructuring efforts.
While Xbox has yet to officially comment on the reports, the coming weeks could prove pivotal for several of the company’s most respected development studios and the future of Microsoft’s first-party gaming strategy.
