Reports this week have revealed multiple studios under the Xbox division are currently in “active negotiations” with Microsoft about their future. This supposedly includes Compulsion Games, which released its new action-adventure South of Midnight on the Switch 2 in March.

According to Bloomberg, Ninja Theory (known for the stunning Hellblade series) and Tim Schafer’s talented studio Double Fine (Psychonauts and Kiln) are also part of the talks. Although these studios are believed to be “at risk of being shuttered”, each team may be given the chance to go independent or find another buyer.

The Verge has expanded on this story – reporting employees at Ninja Theory have already been informed about the possible closure, and there are hopes the studio can find a buyer before this. Kotaku further notes how Compulsion’s leadership is currently in “negotiations” with Microsoft, but details have not been disclosed.

Insider Gaming also claims Arkane Studios (the team developing Marvel’s Blade) is concerned about its future. These reports follow Ninja Theory’s announcement of Senua at the Xbox Showcase this month – a new game taking place after the events of the first two Hellblade titles. Hellblade was originally released on the Switch in 2019.

As this story continues to develop, Bloomberg reporter Jason Schreier notes the “Xbox of July will look drastically different” to the “Xbox of June”.