Having spoken with several "concerned" developers, Screen Play is reporting that Microsoft have begun to "dramatically reduce" the number of independent titles they publish on Xbox Live Arcade.
It's believed that the crackdown is a response to fears that there's simply too much stuff available on the service, and that major publishers are behind the move, having been pressuring Microsoft to cut down on the number of games competing for advertising and awareness.
Independent developers are also upset at what they feel are two different sets of rules for publishers - one for indies and one for major publishers - which sees "independent games rejected for being too similar to an existing title on the service, yet major publishers were able to flood it with retro remakes".
We've contacted Microsoft for comment, and will update if we hear back from them.
Closed shop [Screen Play]