Toys for Bob has reportedly signed a deal with Microsoft after parting ways with the firm last month.

According to Windows Central, the studio has finalised an agreement with Xbox to fund its next title as an independent studio.

The Crash Bandicoot and Spyro developer previously clarified that it was looking to explore “a possible partnership” with its former parent company in a post on the company’s website in February.

“While we’re in the early days of developing our next game and a ways away from making any announcements, our team is excited to develop new stories, new characters, and new gameplay experiences,” said studio heads Paul Yan and Avery Lodato.

“Our friends at Activision and Microsoft has been extremely supportive of our new direction and we’re confident that we will continue to work closely together as part of our future.”

GamesIndustry.biz has reached out to Toys for Bob and Microsoft for further clarification.

Toys for Bob’s decision to go independent followed 87 redundancies at the studio as part of the Microsoft layoffs in January, which also saw the closure of its physical office in San Francisco.