closures

Several studios in Microsoft Corp.’s Xbox gaming division, including Montreal-based Compulsion Games and San Francisco-based Double Fine, are in active negotiations to spin off as they try to thwart closure, according to people familiar with the company’s plans.

Cambridge, England-based Ninja Theory, the maker of Hellblade, is also in conversations with Xbox, as are several other studios across the portfolio that are at risk of being shuttered.

The studios may still have the opportunity to buy themselves back from Xbox and go independent, although many employees will probably lose their jobs as a result, said the people, who asked not to be named because they were not authorized to speak to the press.

Employees at several studios have been informed of the situation and given permission to seek new work but were told that the status of the studios is still in flux.

An Xbox spokesperson declined to comment.

The potential closures are part of a broader reorganization being overseen by Asha Sharma, who took over as Xbox’s new chief executive in February.

Last week, Bloomberg News reported that the gaming division is planning significant layoffs. Sharma sent out a memo to staff lamenting the bleak state of the business, which has seen revenue and margins plummet in recent years. “Going forward, this cannot continue,” she wrote.

Compulsion Games, Double Fine and Ninja Theory all made award-winning games that were not commercial hits. But even some of Xbox’s more commercially successful studios are not yet sure how they will fit into Sharma’s new mandate, which will prioritize the biggest franchises as the company looks to return to growth.

Compulsion Games is the developer behind South of Midnight, which was released last year. Double Fine, best known for the Psychonauts series, released the smaller games Keeper and Kiln over the last year.

Xbox is facing the current challenges despite having made major purchases in recent years, including its acquisition of Activision Blizzard Inc. for $69 billion in a deal that closed in 2023.

Xbox Game Studios head Craig Duncan stepped down last week ahead of the layoffs, said the people familiar with Microsoft’s plans. Gaming newsletter the Game Business previously reported his departure.

Schreier writes for Bloomberg.

ANGRY Sicilian locals hit out at Dua Lipa after two city piazzas were cordoned off for the singer’s wedding bash this weekend.

On Thursday cops tore down posters protesting “Palermo is not for rent” and “Our square is not your living room”.

But yesterday morning graffiti had also appeared on walls in the picturesque Piazza Croce dei Vespri.

The square and adjoining Piazza Sant’Anna have been sealed off for the first of three days of celebrations as One Kiss star Dua, 30, and actor Callum Turner, 36, mark their nuptials.

They officially married in London last weekend before flying to Italy this week.

Guests including singer Charli XCX and music producer Mark Ronson were in Palermo for drinks last night.

LIPA LUXURY

Dua Lipa & Callum Turner soak up the sun at £6k-a-night hotel ahead of big bash

MR RIGHT

I have seen what Callum Turner is REALLY like up close – it truly surprised me

Yesterday, it emerged Dua has paid £5,000 to residents.

The gesture is understood to compensate locals whose apartments overlook the area for parking problems.

But a marble column in the centre had last night not been cleaned of old foul-mouthed graffiti complaining of an unpaid debt.

A source said: “It doesn’t really match the idyllic love story vibe that Dua seems to be going for.”

Dua, Callum and guests have been staying at the five star Villa Igiea hotel overlooking Palermo’s marina.

The couple got a huge cheer and applause as they arrived at their party last night, with Dua dazzling in a halterneck backless dress.

Callum wore a casual suit and could not resist giving his new wife a cheeky squeeze of her bum, left.

The square was decked out with classic Italian cars and an outdoor cocktail bar.

Earlier, police moved on locals in Piazza Sant’Anna.

One resident said of the cops’ action: “It all seems a bit over the top.

“We just wanted to see Dua Lipa and wish her well.”