Undead Labs
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Compulsion Games Confirms Retaining Rights to South of Midnight, We Happy Few After Xbox Split
Compulsion Games has confirmed it is returning to independence after its split from Xbox, retaining the rights to its titles South of Midnight, We Happy Few, and Contrast. This news comes amidst widespread layoffs at Xbox, with Compulsion's future now secure despite rumors of closure. The studio aims to continue creating unique games that tell important stories.
Xbox Appoints Helen Chiang as COO, Studios to Only Have Maximum of 5 Management Layers
Xbox CEO Asha Sharma announced significant changes to the division's operational structure, including reducing management layers to a maximum of five and appointing Helen Chiang as the new Chief Operating Officer. These changes follow recent layoffs affecting approximately 1,200 employees, with plans for further reductions. The restructuring aims to streamline workflows, improve accountability, and refocus investment for future growth, while four studios—Ninja Theory, Compulsion Games, Double Fine Productions, and Undead Labs—are being released from Xbox.
Xbox Announces 3,200 Layoffs for Fiscal Year 2027, Four Studios to be Released
Xbox CEO Asha Sharma announced significant layoffs affecting approximately 3,200 employees, with 1,600 layoffs occurring immediately. Four studios—Ninja Theory, Compulsion Games, Double Fine Productions, and Undead Labs—are being released. Sharma cited lower-than-comparable margins and industry hardware challenges as reasons for the restructuring, aiming to reset Xbox's business focus.
Rare added to the list of Xbox studios under threat
Rumors suggest that Microsoft is planning significant layoffs across several Xbox studios, including Rare, Bethesda, and Arkane, with some studios potentially facing closure or sale. This follows recent layoffs at Bungie and Microsoft pulling out of a partnership with IO Interactive. The reported motivation behind these potential cuts is a focus on profitability by new Microsoft management.
Xbox is closing down studios to help fund more Halo claim insiders
Xbox is reportedly planning significant layoffs and studio closures as part of a strategy to reallocate resources towards key franchises like Halo, The Elder Scrolls, and Fallout. Insiders suggest this move aims to revitalize struggling IPs and address issues with post-launch support, particularly for Halo Infinite. Several studios, including Ninja Theory and Double Fine, are rumored to be at risk.
Marvel’s Blade is Seemingly “Pretty Far Along” With Reveal Planned for 2026 – Rumor
Rumors suggest that Arkane Studios' Marvel's Blade is far along in development, with a potential reveal planned for 2026 and release in 2027. Despite reports of delays and Xbox potentially not wanting to fund further development, the game's existence is not officially confirmed, nor is the fate of Arkane Studios or other Xbox-owned studios like Compulsion Games and Ninja Theory.
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.
Rumor: Microsoft’s next layoffs are poised to hit Blizzard, Bethsoft, and Undead Labs
Rumors suggest Microsoft is planning significant layoffs across several of its gaming studios, including Undead Labs, Blizzard Entertainment, and Bethesda Softworks. These cuts are reportedly the largest for Xbox and come as the company evaluates its recent Activision Blizzard acquisition. Unionized workers at Xbox are reportedly organizing to negotiate over potential job losses.
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.
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.
State of Decay studio Undead Labs potentially up for closure, sources claim, with Bethesda and Blizzard also facing layoffs
Microsoft is reportedly planning significant layoffs across its gaming division, potentially including the closure of Undead Labs, the studio behind State of Decay. Bethesda and Blizzard Entertainment are also expected to face substantial job cuts as part of a company-wide "reset." Union workers are negotiating with management to protect jobs or secure severance packages amid these widespread reductions.
