Psychonauts
News, coverage and analysis tracking Psychonauts across the outlets.
Summary: what's happening at Xbox?Xbox announced a major restructuring involving 3,200 job cuts, with 1,600 immediate layoffs, primarily affecting ZeniMax studios like Bethesda and id Software. Several studios, including Compulsion Games, Double Fine, Ninja Theory, and Undead Labs, are being sold off or spun out as independent entities. This move aims to refocus on high-earning franchises and improve profit margins, impacting the development of upcoming titles like The Elder Scrolls 6 and potentially State of Decay 3.
Zenimax omorganiseras för att fokusera på sina stora varumärkenZeniMax Media is undergoing a significant restructuring to concentrate on its major franchises like The Elder Scrolls, Fallout, Wolfenstein, Doom, and Quake. This reorganization follows recent layoffs at Xbox and involves some studios becoming independent or being sold, though ZeniMax itself retains its studios.- Comings and GoingsFollowing recent layoffs at Xbox, Double Fine and Compulsion Games have confirmed their studio statuses and ability to retain franchises like Psychonauts. A union has also launched a hardship fund to support laid-off developers.
Xbox acquisitions have been a disaster: "In a typical year, we lost 64 cents for every dollar we invested"Xbox CEO Asha Sharma revealed that Microsoft's aggressive acquisition strategy has resulted in significant financial losses, with the company losing 64 cents for every dollar invested in typical years since 2018. In response to this unsustainable model, Xbox is undergoing a reset, leading to layoffs and the divestment of several studios, including Compulsion Games, Double Fine, Ninja Theory, and Undead Labs, while others like Arkane Studios are reviewing strategic options.
Microsoft needs to "reset Xbox," says Asha Sharma, as the company lays off 3,200 employeesMicrosoft's Xbox division is undergoing significant restructuring, with approximately 3,200 employees being laid off throughout the 2027 fiscal year, including 1,600 immediately. CEO Asha Sharma stated the business is not healthy and operating at lower margins than comparable companies. Several studios, including Compulsion Games and Double Fine Productions, will transition to independent management, while Ninja Theory and Undead Labs are set to be acquired by new owners.- Double Fine and Compulsion Confirm Status Following Xbox Cuts, Get to Keep Franchises Such as Psychonauts and South of MidnightFollowing significant layoffs by Xbox, Double Fine and Compulsion Games have confirmed they will continue as independent studios. Both companies will retain ownership of their respective franchises, including Psychonauts and South of Midnight.
Xbox cuts 3,200 staff as four studios to exit Microsoft – Arkane under reviewMicrosoft has announced significant layoffs affecting approximately 3,200 employees within its Xbox division, with 1,600 staff being let go immediately. Four studios, including Ninja Theory and Undead Labs, are becoming independent or being sold off, while Arkane Lyon's future is under review. This restructuring follows a period of rapid developer acquisitions and aims to refocus Xbox's business strategy.
Xbox are parting ways with Double Fine, Arkane, Undead Labs, Compulsion, and Ninja Theory in the course of thousands of layoffsMicrosoft has announced significant layoffs affecting 3200 employees and is parting ways with five Xbox-owned studios: Double Fine, Arkane, Undead Labs, Compulsion Games, and Ninja Theory. Some studios will become independent or find new ownership, while Arkane's future is uncertain. CEO Asha Sharma cited rising costs, underperforming acquisitions, and a challenging industry landscape as reasons for the "reset."
Microsoft confirms 3200 layoffs and four studio departuresMicrosoft has confirmed significant layoffs affecting approximately 3,200 employees across its Xbox business, including 1,600 on the day of the announcement. Four studios, Compulsion Games, Double Fine, Ninja Theory, and Undead Labs, will either become independent or find new ownership, while Arkane Studios faces strategic review. Xbox CEO Asha Sharma cited slower-than-expected growth in Game Pass, multi-platform strategies, and content portfolio as reasons for the restructuring, which will also involve reducing management layers.
Xbox confirms mass layoffs, Double Fine Productions and Compulsion Games to go independentXbox 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 LabsMicrosoft 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 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 historyMicrosoft 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.- Rare added to the list of Xbox studios under threatRumors 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.
Rykte: State of Decay 3-utvecklaren Undead Labs riskerar också stängningRecent 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.
State of Decay studio Undead Labs potentially up for closure, sources claim, with Bethesda and Blizzard also facing layoffsMicrosoft 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.
As Xbox studios brace for a "reset," South of Midnight developers from Compulsion Games begin looking for workDevelopers from Compulsion Games, the studio behind South of Midnight, are leaving en masse as parent company Xbox Game Studios undergoes a significant business 'reset'. Multiple reports indicate potential layoffs or closures across several Xbox Game Studios, with Compulsion Games reportedly in talks to spin off independently. Several employees have publicly announced they are seeking new opportunities after years with the studio.
Amid reports of closures to Ninja Theory and Compulsion Games, Xbox Game Studios CEO Craig Duncan is stepping down from…Xbox Game Studios CEO Craig Duncan and chief of staff Louise O'Connor are stepping down amid reports of significant layoffs and the closure of studios like Ninja Theory, Compulsion Games, and Double Fine. Duncan, who previously led Rare for 14 years, had been CEO for less than two years. These changes follow a strategic "Xbox reset" outlined by CEO Asha Sharma.- Xbox Game Pass Soldiers on With June 2026 Wave 2 Lineup AnnouncementMicrosoft has announced the Xbox Game Pass lineup for June 2026 Wave 2, amidst reports of potential studio closures and mass layoffs affecting developers like Ninja Theory, Double Fine, and Compulsion Games. The company has not yet commented on these reports.
- Psychonauts Developer Double Fine Responds to Closure Reports With a Single EmojiDeveloper Double Fine, known for the Psychonauts series, has responded to reports suggesting its potential closure. The studio addressed the rumors with a single emoji, offering a brief and somewhat cryptic reply to the speculation.