Several Xbox Studios Reportedly in Talks to Become Independent
A period of significant uncertainty has hit Xbox Game Studios, with reports indicating that several developers are currently in negotiations to spin off and become independent entities. According to reporting from Bloomberg, these talks are part of an effort by the studios to thwart potential closures.
- Studios Named: Compulsion Games, Double Fine, Ninja Theory
- Context: Active negotiations to spin off as independent entities
- Leadership Changes: Xbox Game Studios boss Craig Duncan and Chief of Staff Louise O’Connor have resigned
- Stated Goal: Microsoft is seeking to make the Xbox division a “sustainable business”
Compulsion Games and Studio Stability
Compulsion Games, the Montreal-based developer behind South of Midnight, appears to be at the center of these discussions. Kotaku reports that leadership at the studio is actively negotiating with Microsoft over the company's fate. While official details regarding these talks remain private, the possibility of the studio regaining its independence has emerged as a potential outcome.
The situation follows a weekend of speculation regarding incoming closures. Staff members at the studio, including writer Zaire Lanier, have indicated on social media that they are currently seeking new employment. LinkedIn currently lists approximately 90 employees at the studio, which was acquired by Microsoft in 2018.
Leadership Departures and Business Strategy
The shift comes alongside major changes at the executive level. Craig Duncan, who served as the boss of Xbox Game Studios, has resigned less than two years into his tenure. Louise O’Connor, the division's Chief of Staff, has also left the organization.
These developments align with recent comments from Microsoft CEO Satya Nadella, who stated that the Xbox division must transition into a “sustainable business” following 25 years of subsidies. Nadella noted during the weekend that, currently, “there's more monetisation of Xbox games happening on YouTube than at Microsoft.”
The broader strategy for the division appears focused on efficiency, with reports suggesting that the company is pushing for faster development cycles on major franchises like Fallout and The Elder Scrolls to bolster the business. As these negotiations continue, the future of several prominent development teams remains in flux.