10 hours ago
Studio leaders are trying to bargain themselves backmost earlier being unopen down for good.
Engadget
Xbox is preparing to unopen down aliases waste astatine slightest 3 of its studios — Double Fine, Ninja Theory and Compulsion Games — according to reports from The Verge and Bloomberg connected Monday.
Ninja Theory labor were informed connected Monday that nan workplace would beryllium closing, according to The Verge, but nan squad is attempting to find a purchaser that tin support them operational. Ninja Theory is nan workplace down nan Hellblade bid and it was featured successful nan caller Xbox Summer Game Fest showcase, revealing a caller entry due successful 2027.
Double Fine is nan legendary workplace down nan Psychonauts games, Brütal Legend, Broken Age, Keeper and each mode of LucasArts adventures, founded by Tim Schafer and friends successful 2000. Double Fine leaders are successful progressive negotiations to bargain themselves backmost from Xbox alternatively than beryllium closed altogether, Bloomberg said.
Compulsion Games is successful a akin position, according to nan report. Compulsion is nan Montreal workplace down nan uber-stylish games Contrast, We Happy Few and South of Midnight, nan second of which came retired successful April 2025.
Bloomberg reported that respective different studios nether nan Xbox Game Studios banner are besides negotiating for their futures and are astatine consequence of being unopen down. As it officially stands, nan Xbox Game Studios umbrella covers dozens of studios, including Arkane, Bethesda, Halo Studios, id Software, Obsidian, Playground Games, ZeniMax and Activision Blizzard King. We person contacted Xbox for explanation connected nan reported closures and buyout talks.
Microsoft's modern game-studio acquiring spree kicked disconnected successful 2018 pinch nan acquisition of Undead Labs, Playground Games, Ninja Theory and Compulsion Games, positive nan statement of The Initiative. This momentum continued building at a concerning pace successful 2020 and 2021, erstwhile Xbox acquired 8 much studios nether ZeniMax Media, including Arkane, Bethesda and id. Everything came to a caput successful 2022 pinch nan announcement that Xbox planned to acquisition Activision Blizzard for $69 billion, nan largest acquisition successful video crippled history. That woody yet went done at nan extremity of 2023, aft a lengthy conflict pinch regulators.
Since nan acquisitions, Microsoft has enacted multiple monolithic rounds of layoffs affecting thousands of employees successful its gaming division, and besides shuttered well-known studios, including The Initiative. Unfortunately, Double Fine, Ninja Theory, Compulsion and nan different at-risk Xbox studios are successful bully company.
Longtime Xbox section caput Phil Spencer stepped down this twelvemonth and was replaced by caller CEO Asha Sharma, alongside different executive-level changes. Also connected Monday, Xbox Game Studios caput Craig Duncan left nan company; he first took nan domiciled successful October 2024. Employees crossed Xbox are bracing for much layoffs successful 2026 aft an ominous nationalist memo from Sharma dropped successful mid-June, conscionable arsenic nan glow of Summer Game Fest afloat faded.
