Xbox are reportedly closing or spinning off Psychonauts developers Double Fine, Hellblade studio Ninja Theory, and South of Midnight creators Compulsion Games, as Microsoft commence efforts to yet again “reset” their billion dollar gaming business after already laying off thousands of staff, cancelling games, and closing several studios over the past couple of years.

All three studios are apparently now haggling for their continued existence, as the end of Microsoft’s financial year looms, with many other Xbox teams said to be affected, and certain employees quietly encouraged to start seeking work elsewhere.

The report comes from Bloomberg, who cite anonymous staff at several studios. The Verge (paywall) also have an article in which they claim that Ninja Theory are in the process of trying to find a buyer, after being informed that they will be closed on Monday. Ninja Theory have literally just announced a new Senua game. Like, days ago.