Toys for Bob is also based in California so letting them go independent will be another cost cutting for Microsoft, Lol, don't have to pay the salaries of a few dozen Californian employees.
I wonder if they'll do a first rights of refusal contract with them or if it's a basic publishing contract.
The industry needs to allow spinoffs more often...Microsoft hasn't shutdown a studio since 2016 and I hope it remains that way, it is a so much easier to just shutdown a studio so it deserves a little credit when a publisher opts to spin one off.