Several studios within Xbox are reportedly in active negotiations to avoid closure, according to a Bloomberg report by Jason Schreier. Among the names mentioned are Compulsion Games, Double Fine Productions, and Ninja Theory, and one of the options is spinning off from Microsoft and continuing to operate as independent studios. According to the same report, such an outcome would not necessarily mean a smooth transition as it could still lead to a significant number of layoffs.
The situation comes at a time of broader restructuring at Xbox, following an internal message from Xbox CEO Ashe Sharma titled “Next 100 Days: Xbox Reset,” which announces a business reset due to rising costs and an overly broad studio system. The Verge reports that Ninja Theory staff have already been informed about the potential closure, while the studio is reportedly trying to find a buyer. Kotaku previously wrote about the plan to shut down Compulsion Games, with a later update that the studio's leadership is negotiating with Xbox.
