The studio announced that it has left Microsoft following the tech giant's second round of job cuts this year. The move marks a significant shift for the developer, which was previously wholly owned by the Xbox division. The studio's independence comes as part of a broader restructuring at Microsoft, which has seen numerous job cuts across its gaming division.

Despite the studio's independence, the news is not entirely positive. Undead Labs has confirmed that a significant number of staff have been laid off in the process. The studio has not released specific numbers, but the layoffs are described as a significant number. This is a common outcome of such restructuring efforts, where studios are spun out or sold to reduce costs.