Gaming

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 likely 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.