Ninja Theory, Double Fine, and Compulsion Games are in active negotiations to spin off from Xbox. The studios seek independence to avoid potential closures during a reorganization of Microsoft’s gaming division.

Discussions include options for the developers to buy themselves back from the parent company. Transitioning to independence would likely result in significant layoffs at the affected studios despite avoiding total closure.

New Xbox CEO Asha Sharma is driving the restructuring to prioritize division profitability. This move follows broader cost-cutting efforts across Microsoft's gaming portfolio.