Earlier today, word broke that Microsoft is reportedly planning to close Compulsion Games–the studio behind South of Midnight, We Happy Few, and Contrast–as part of a larger round of layoffs and studio closures. Now, there’s word that a handful of Xbox Studios’ smaller developers are taking some steps to avoid that fate.
Bloomberg is reporting that Compulsion, Double Fine, Ninja Theory, and “several other studios” have started negotiations with Microsoft to spin off their companies from Xbox Studios and avert full studio closures. Potentially, this would give the studios a chance to buy out Microsoft’s stake in their companies or allow them to find financial backers who could become the new owners.
