Several well-known Xbox first-party game studios are negotiating with Microsoft to purchase their own independence rather than face closure, according to Jason Schreier at Bloomberg.
The studios reportedly in active talks include Ninja Theory — known for the Hellblade series — as well as Compulsion Games and Double Fine. According to Bloomberg's sources, the studios may be granted the chance to go independent, avoiding outright shutdown.
Engadget separately reported that Ninja Theory, Double Fine, and Compulsion Games were among studios at risk of being closed down by Xbox, setting the stage for these buy-back negotiations as a potential lifeline.
The talks signal a notable shift in Microsoft's approach to its gaming portfolio. After spending billions acquiring studios over the past several years — including the landmark Activision Blizzard deal — the company now appears to be pulling back, looking to shed studios rather than expand. Allowing teams to buy back their freedom is an unusual middle path: it avoids the reputational damage of outright studio closures while letting Microsoft trim costs.
For gamers, the stakes are real. These are studios with distinct creative identities — Double Fine, led by Tim Schafer, has been a beloved independent voice in games for decades. If the negotiations succeed, beloved franchises and creative teams could survive under independent ownership rather than disappearing entirely. Whether the studios can secure the funding to actually complete such buyouts remains an open question.