Bloomberg News, citing sources, reported that studios including Compulsion Games, Double Fine, and Ninja Theory are in negotiations with Xbox for potential spin-offs.
According to sources, these studios may buy back their shares from Xbox to transition into independent companies. However, this process could result in significant job losses, and the final outcomes for each studio remain uncertain.
The review of potential closures is part of a broader restructuring within the Xbox gaming division. Asha Sharma, who became CEO of Xbox in February, is leading the reorganization amid declining revenue and profitability.
Compulsion Games, Double Fine, and Ninja Theory have developed award-winning titles but have not achieved significant commercial success. Compulsion Games released 'South of Midnight' last year, while Double Fine is known for the 'Psychonauts' series.
Xbox plans to prioritize its business around major franchises to recover growth. Bloomberg previously reported that Xbox is preparing for substantial layoffs.
Microsoft has made significant investments in expanding its gaming business in recent years, including a $69 billion acquisition of Activision Blizzard in 2023. However, Xbox is facing pressure to cut costs and restructure due to declining profitability.
* This article has been translated by AI.
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