Microsoft is reportedly in talks to close several Xbox game studios as part of a broader restructuring. Negotiations involve studios behind well-known titles including Psychonauts, South of Midnight, and Hellblade.
Bloomberg reports that Compulsion Games, Double Fine, and Ninja Theory have begun discussions with Microsoft to regain independence and avoid shutdowns. Kotaku has corroborated the details on Compulsion Games.
Staff at Ninja Theory learned of the planned closure on Monday, according to The Verge, though the team hopes to secure a buyer. The studio recently revealed its next project, Senua, at the Xbox Games Showcase.
The moves follow last week's reports of a business reset under new Xbox CEO Asha Sharma, which includes budget cuts and layoffs. Craig Duncan stepped down as head of Xbox Game Studios the day before the latest reports.
Bloomberg's Jason Schreier noted that the Xbox of July will look drastically different than the Xbox of June. Several other unnamed studios are also said to be at risk.
