Xbox Studios Shake-Up: Double Fine, Ninja Theory, and More May Go Independent

There's been a buzz around the Xbox community lately with the news of potential layoffs and studio closures. Microsoft is reportedly planning to close Compulsion Games, the studio behind South of Midnight, We Happy Few, and Contrast, as part of a larger round of layoffs and studio closures.

However, there's hope for some of the affected studios. Bloomberg is reporting that Compulsion, Double Fine, Ninja Theory, and "several other studios" have started negotiations with Microsoft to spin off their companies from Xbox Studios and avert full studio closures.

This could provide the studios with an opportunity to buy out Microsoft's stake in their companies or find new financial backers. However, this may not be enough to save every developer at the affected studios. Many employees will likely lose their jobs as a result of going independent.

Craig Duncan, the head of Xbox Game Studios, has left the company after a 15-year stint with Microsoft. This move comes ahead of any big changes to Xbox itself, as Microsoft is considering spinning off Xbox into a new standalone company to improve its financial performance.