Compulsion Games
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Rumors claim Xbox wants to close Obsidian, but Jason Schreier says otherwise
Recent reports suggest Xbox is considering closing or selling several studios, including Obsidian Entertainment, due to financial pressures. However, journalist Jason Schreier has refuted claims that Obsidian is in negotiations to avoid closure, stating Xbox intends to keep the developer. The article also touches on frustrations within Xbox regarding leadership's focus on profitability and the impact of underperforming titles like Call of Duty: Black Ops 7.
Is yet another Microsoft studio, Obsidian, negotiating with Xbox to avoid closure? Conflicting reports emerge
Conflicting reports suggest that Obsidian Entertainment is negotiating with Microsoft to avoid closure, amidst a wave of layoffs affecting other Xbox studios like Arkane, Double Fine, Compulsion Games, Ninja Theory, and Undead Labs. While one report indicates internal sentiment blames poor Call of Duty performance for these decisions, another source denies Obsidian is in negotiations to shut down, stating the studio will be kept by Xbox.
Xbox May Shut Down Obsidian Entertainment, Too
New reports indicate that Xbox is considering shutting down or selling Obsidian Entertainment, the studio behind games like Avowed and Fallout: New Vegas. This potential closure is part of a larger plan by Xbox to reallocate funds towards its major franchises, potentially affecting other subsidiaries like Compulsion Games, Double Fine, Ninja Theory, and Undead Labs.
The Outer Worlds, Avowed Developer “Deep in Negotiation” With Xbox to Avoid Closure – Rumor
Reports suggest that Xbox is in negotiations with Obsidian Entertainment to prevent its closure, alongside other studios like Arkane and Ninja Theory. This comes after The Outer Worlds 2 and Avowed reportedly failed to meet Xbox's sales expectations. The fate of these studios, including Obsidian, is expected to be revealed around July 6th.
This Week In Games Was Bad, But Next Week May Be Worse
The gaming industry experienced a particularly bleak week with multiple significant layoffs, studio closures, and price increases. Microsoft's Xbox division saw widespread job cuts, while Sony announced plans to end physical disc production for PlayStation games by 2028. These events, coupled with delays and the ongoing impact of AI discussions, paint a grim picture for the industry's immediate future.
Dishonored developer Arkane is reportedly one of five studios Microsoft is targeting to close down as part of its big 'reset'
Microsoft is reportedly considering closing down Arkane Studios, the developer of the Dishonored series and Marvel's Blade, as part of a major 'reset' plan for its Xbox division. Arkane is among five studios, including Compulsion Games, Ninja Theory, Double Fine, and Undead Labs, whose futures are uncertain. The company is also planning significant layoffs, potentially affecting over 1,000 jobs, with cost-cutting measures impacting various parts of the division.
Xbox weighs closing Arkane Studios while pulling out of IO Interactive's next project
Xbox is reportedly considering closing Arkane Studios and cancelling Marvel's Blade due to development concerns. Additionally, Xbox has withdrawn funding and publishing support for IO Interactive's new fantasy project, codenamed 'Project Fantasy,' forcing the Danish studio to seek alternative arrangements. These moves are part of a broader restructuring by Xbox to refocus investments on its highest-priority titles and IPs.
Marvel’s Blade Could Be Cancelled as Xbox Considers Shutting Down Arkane Studios – Rumor
Reports suggest that Xbox is considering cancelling Marvel's Blade and potentially closing Arkane Studios in Lyon due to budget concerns and impending layoffs. Other studios like Double Fine, Compulsion Games, Ninja Theory, and Undead Labs are also reportedly on the chopping block, with potential layoffs extending to id Software and Blizzard Entertainment.
Kojima Productions’ OD Remains Safe Ahead of Xbox Reset – Rumor
Despite recent rumors of potential studio closures and layoffs at Xbox, Kojima Productions' upcoming horror title OD is reportedly safe. This comes as other studios like Ninja Theory, Undead Labs, Compulsion Games, Double Fine Productions, and Arkane Lyon face uncertain futures. OD remains Kojima Productions' primary focus for 2026.
Microsoft reportedly add Arkane and their Blade game to the potential shuttering pile
Microsoft is reportedly considering shutting down Arkane Studios and canceling the Blade game, with potential layoffs affecting up to 1000 employees across Xbox. Other studios like Ninja Theory and Undead Labs are also rumored to be on the chopping block. The company is also reportedly divesting its partnership with IO Interactive on Project Fantasy.
Rykte: State of Decay 3-utvecklaren Undead Labs riskerar också stängning
Recent reports suggest that Microsoft may be considering closing or selling Undead Labs, the developer of the highly anticipated State of Decay 3. This follows unconfirmed information that Ninja Theory, Double Fine, and Compulsion Games are also facing potential closures or sales. Microsoft is reportedly planning to make these decisions in early July.
Xbox could cancel Marvel's Blade and close Arkane in July bloodbath, report says, or the studio may be sold off
Xbox is reportedly considering closing or selling Arkane Studios and canceling its game Marvel's Blade due to budget and release date issues. This is part of a larger wave of layoffs expected in July as Microsoft aims to cut costs. Other studios like Arkane Austin and Compulsion Games have also faced closures or struggles.
Report: Xbox considering sale or closure of Arkane, other studios, as layoffs loom
A report suggests Xbox is considering selling or closing several studios, including Arkane Studios, Double Fine, Compulsion Games, Ninja Theory, and Undead Labs, as part of a major 'reset' under new CEO Asha Sharma. The upcoming game 'Blade' is reportedly over budget and may be canceled. Mass layoffs affecting over a thousand roles are also anticipated across Xbox in early July, following the Activision Blizzard acquisition.
Xbox cuts rumoured to be the ‘largest single layoff event’ in gaming history
Reports suggest that Xbox is planning a significant round of layoffs, potentially the largest in gaming history, impacting multiple studios including Undead Labs, Ninja Theory, Compulsion Games, and Double Fine. Game designer George Broussard claims to have inside information indicating widespread studio closures and job cuts across the Xbox division following the end of its fiscal year.
Xbox is reportedly considering closing State of Decay developer Undead Labs
Microsoft is reportedly considering closing several Xbox-owned studios, including Undead Labs, the developer of the State of Decay series. Other studios at risk include Double Fine, Compulsion Games, and Ninja Theory, as part of a broader 'reset' plan for the Xbox brand aimed at improving profitability. These potential closures could result in hundreds of job losses, with layoffs expected to begin in early July.
CWA union says Xbox workers are not "disposable" as layoffs loom
The Communications Workers of America (CWA) union is supporting Xbox employees facing potential layoffs, stating they will not be treated as "disposable." Union representatives highlighted Microsoft's financial resources, including recent console price increases and executive compensation, as evidence that layoffs are a choice. An Xbox spokesperson acknowledged the company respects employees' rights and is negotiating in good faith with the CWA.
South of Midnight studio Compulsion Games are allowing staff to openly seek new jobs ahead of possible Xbox layoffs, according to report
Compulsion Games, the studio behind South of Midnight, has reportedly given some staff permission to seek new employment ahead of potential layoffs at Xbox Game Studios in July. While no layoffs have occurred yet, developers have begun posting on LinkedIn about their availability for new roles. This situation is occurring amidst reports that Compulsion Games' future is uncertain, with possibilities including closure or spinning off into independence.
It's not layoffs, but you can see them from here: Numerous Compulsion Games employees are looking for new jobs
Numerous employees at Microsoft-owned Compulsion Games are reportedly looking for new jobs, with some indicating they have been given permission to do so due to impending layoffs. While not officially confirmed as layoffs by studio leadership, the situation mirrors reports of potential closures and job cuts at other Xbox studios like Double Fine and Ninja Theory. These expected layoffs are anticipated to occur in early July, following the end of Microsoft's fiscal year.
Comings and Goings
Compulsion Games, the studio behind South of Midnight and We Happy Few, has begun an unspecified number of layoffs. The reasons for the staff reductions were not immediately clear.
Amid reports Xbox is preparing for significant layoffs, a wave of staff at South of Midnight developer Compulsion Games announce their departure
Multiple employees have announced their departures from Compulsion Games, the developer of South of Midnight, amid reports of significant layoffs and potential studio closures within the Xbox division. These departures follow news that Microsoft is planning major restructuring across its gaming division, with Compulsion Games, Double Fine, and Ninja Theory reportedly among the studios at risk.
