Fresh reports suggest that uncertainty within Microsoft’s gaming division may extend beyond previously rumored studios, with Bloomberg’s Jason Schreier reporting that several Xbox-owned developers are currently exploring options to avoid potential closure.
According to Bloomberg, Montreal-based Compulsion Games and San Francisco-based Double Fine Productions are engaged in active negotiations with Xbox regarding potential spin-offs. The report states that both studios are attempting to separate from Microsoft’s gaming division as concerns over their long-term future continue to grow.
Bloomberg further reports that Ninja Theory, the Cambridge-based studio behind the Hellblade series, is also involved in discussions with Xbox. Schreier indicated that several other studios across Microsoft’s portfolio are facing similar uncertainty and could be at risk of being shuttered.
According to people familiar with the matter cited by Bloomberg, affected studios may have an opportunity to regain independence through buyouts, though such arrangements could still result in significant job losses. The report also claims that employees at several studios have already been informed of the situation and have been given permission to seek employment elsewhere while discussions remain ongoing.
The latest claims add to a growing number of reports regarding instability within Xbox Game Studios following Microsoft’s broader restructuring efforts. Earlier, Insider-Gaming’s Mike Straw reported that employees at both Compulsion Games and Arkane had expressed fears about their future, with some reportedly describing “real concern” that their studios could be affected by future cuts.
Prior to that, Obsidian Entertainment co-founder Chris Avellone stated that management at Xbox studios once considered relatively secure had begun warning employees that the impact of Microsoft’s organizational changes remains unclear. According to Avellone, uncertainty has spread even among teams with a consistent history of game releases under Xbox ownership.
At the time of writing, Microsoft has not publicly commented on Bloomberg’s report. The status of the studios mentioned remains unresolved, and no official announcements regarding closures, spin-offs, or divestitures have been made. As a result, the future of Compulsion Games, Double Fine, Ninja Theory, and other potentially affected teams remains uncertain.
