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Xbox confirms mass layoffs, Double Fine Productions and Compulsion Games to go independent
Xbox CEO Asha Sharma announced significant changes, including layoffs affecting 3,200 employees and four studios becoming independent or sold. Compulsion Games and Double Fine Productions are now independent, retaining their IP rights, while Ninja Theory and Undead Labs have been sold to new owners. Sharma cited an unhealthy business model with low profit margins as the reason for these drastic measures.
Xbox cutting 3,200 jobs and parting ways with Double Fine, Compulsion, Ninja Theory, and Undead Labs
Microsoft has initiated a significant restructure of its Xbox division, eliminating 3,200 jobs and parting ways with four studios: Double Fine, Compulsion Games, Ninja Theory, and Undead Labs. New Xbox CEO Asha Sharma stated the cuts are necessary due to underperforming bets on Xbox Game Pass and multiplatform releases, as well as a severe hardware crisis impacting component prices. The company aims to streamline operations, reduce management layers, and foster a more efficient development environment.
Xbox to reduce workforce by 3,200, five studios to be divested
Xbox announced significant workforce reductions affecting 3,200 employees and the divestment of five studios: Compulsion Games, Double Fine, Ninja Theory, Undead Labs, and Arkane. Compulsion Games and Double Fine will become independent, while Ninja Theory and Undead Labs are set for new ownership to continue development on their respective projects. Xbox CEO Asha Sharma stated the company is refocusing its strategy, acknowledging that it cannot be the best home for every studio.
Microsoft is cutting 3,200 Xbox employees, and half of them will be eliminated today in "the most significant…
Microsoft has initiated significant layoffs within its Xbox division, with approximately 1,600 employees being cut on July 6, 2024, as part of a larger restructuring plan affecting around 3,200 roles by the end of fiscal year 2027. This reduction includes the closure or sale of four studios: Compulsion Games, Double Fine, Ninja Theory, and Undead Labs. The company is also considering strategic options for Arkane Studios.
Xbox parts ways with 4 studios, with South of Midnight and Psychonauts devs going independent as Arkane begins "required consultation" to "review potential strategic options"
Xbox is undergoing a significant restructure, leading to four of its studios becoming independent or finding new ownership. Compulsion Games and Double Fine Productions will transition to independent studios, while Ninja Theory and Undead Labs will be acquired by new owners. Additionally, Arkane Studios is entering a consultation period to review its strategic options.
Microsoft announces 3200 layoffs and four studio departures in "most significant" Xbox restructuring in history
Microsoft has announced a significant restructuring of its Xbox division, including approximately 3,200 layoffs and the departure of four studios. Compulsion Games and Double Fine Productions will become independent, while Ninja Theory and Undead Labs are seeking new ownership. Arkane Studios is also under review. Xbox CEO Asha Sharma cited business performance and industry challenges as reasons for the changes.
Xbox Layoffs, Studio Closures, And Spin-Offs: Everything Announced Today
Microsoft has announced significant layoffs and studio restructuring within its Xbox division, impacting 3,200 employees over the current financial year, with 1,600 layoffs starting immediately. Several studios, including Compulsion Games and Double Fine Productions, are transitioning back to independent management, while others like Ninja Theory and Undead Labs are seeking new ownership. The company cited financial underperformance and a need to reset its strategy, focusing investment on higher-priority games and core IPs.
Resetting XBOX
Xbox is undergoing its most significant restructure in history, involving approximately 3,200 job reductions throughout fiscal year 2027, with 1,600 roles eliminated immediately. Four studios, including Compulsion Games and Double Fine Productions, will transition to independent management, while Ninja Theory and Undead Labs are in terms to join new ownership. This strategic reset aims to improve profitability and focus on core businesses, with a simplified organizational structure and a new Chief Operating Officer, Helen Chiang, overseeing operations.
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.
State of Decay 3 Could Skip Game Pass, Third-Party Funding Still Lives – Rumor
A report suggests that State of Decay 3 might not be a day one release on Xbox Game Pass, despite Xbox funding its development, as Undead Labs is reportedly under new ownership. The article also touches on the shifting priorities at Xbox regarding Game Pass funding for third-party developers and the perceived underinvestment in the Minecraft IP.
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 Layoffs Won’t Stop Work on Doom, Quake and Wolfenstein
Despite significant layoffs impacting Xbox and its ZeniMax Media subsidiaries, work on franchises like Doom, Quake, and Wolfenstein will continue. Xbox CEO Asha Sharma confirmed that ZeniMax will not be reduced to only developing Fallout and The Elder Scrolls. The company is also undergoing management restructuring to streamline decision-making processes.
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.
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.
