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Newly independent studio Toys for Bob has reportedly reached a deal with Microsoft to fund its next title. The developer, which in recent years was utilized as a Call of Duty support studio, was originally absorbed alongside several other studios when Microsoft acquired Activision Blizzard, but regained its independence in February. Toys for Bob had mentioned a potential partnership with Microsoft in its "going indie" announcement, saying at the time that it was in the early days of developing its next game.

According to Windows Central, head of Xbox Game Studios Matt Booty explained during a town hall meeting that an agreement had been reached between Xbox and Toys for Bob to develop a new game similar to what the studio had produced in the past.

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Toys for Bob leadership said that it was aiming to keep its team together--following the loss of 86 employees as part of Microsoft's layoffs in January--and is returning to developing the style of games that it's best-known for. It's worth noting that when Toys for Bob first announced that it had become an independent studio again, fans were told to "keep their horns on" regarding future announcements.

This could be a reference to Spyro, a franchise now owned by Microsoft alongside Crash Bandicoot, Call of Duty, and many more. In the 2010s, Toys for Bob popularized the toys-to-life genre with Skylanders: Spyro's Adventure and it would later go on to develop Crash Bandicoot N. Sane Trilogy, Spyro Reignited Trilogy, and Crash Bandicoot 4: It's About Time.

After assisting on Call of Duty for several years, the company's final Activision Blizzard game was the multiplayer strategic platformer Crash Team Rumble.

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