Studio Closures
Ongoing coverage on Studio Closures.
Latest coverage
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.
Amid Xbox “Reset,” Microsoft Is Having Its Worst Month In 26 Years
Microsoft is experiencing its worst stock performance in 26 years, with shares down approximately 20% in June 2026. This financial downturn coincides with an 'reset' of the Xbox business under CEO Asha Sharma, which is expected to include significant layoffs and studio closures, driven in part by CFO Amy Hood's demands for cost savings. Despite overall revenue growth, high capital expenditures for AI infrastructure and Xbox's low profit margins are impacting investor confidence.
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.
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.
The Studio Behind This Acclaimed PS5 Metroidvania Is Closing Its Doors
Douze Dizièmes, the French studio behind the PlayStation 5 Metroidvania game MIO: Memories in Orbit, is shutting down. The studio recently bought back its shares from publisher Focus Entertainment to become independent, but has now decided to close its doors. This news highlights a broader trend of studio closures within the struggling French video game industry.
Amidst mounting fears of Xbox closures, Todd Howard says Arkane is 'doing a really, really good job' on Blade
Despite fears of studio closures at Xbox, Bethesda Softworks boss Todd Howard confirmed that Arkane Lyon is making good progress on Marvel's Blade. Howard stated he saw positive work from the studio recently, offering reassurance amidst a lack of public updates on the game. The article also touches on Microsoft's recent studio closures, including Arkane Austin, and the controversial announcement of a new Ninja Theory game while the studio was reportedly slated for closure.
Ubisoft eliminates 93 roles in San Francisco
Ubisoft is eliminating 93 roles at its San Francisco office, with the layoffs expected to be permanent. This follows recent announcements of studio closures in Winnipeg and Belgrade, and a significant year-on-year decrease in net bookings. The company also secured a $1.25 billion investment from Tencent.
5 promising games recently cancelled by Microsoft
Microsoft has recently cancelled several promising game projects, including 'Odyssey,' 'Everwild,' 'Perfect Dark,' 'Contraband,' and 'Project Blackbird,' as part of a broader cost-cutting strategy under new CEO Asha Sharma. These cancellations have led to studio closures and significant layoffs, with former employees expressing disappointment over the loss of potentially exciting titles and the shift away from riskier, ambitious projects.
Xbox is Punishing its Studios For Following Previous Orders – Report
A report indicates that Xbox is punishing its studios for following previous directives, leading to significant layoffs and studio closures. This follows major investments like the Activision Blizzard acquisition and the push for Game Pass, with some studios being criticized for prioritizing the subscription service over individual game sales. The situation has created an environment of fear and uncertainty, impacting game development.
Anyone Not Working on The Elder Scrolls or Fallout at Bethesda is Being Laid Off – Rumor
Reports suggest that ZeniMax Media, including studios like Bethesda Game Studios and id Software, is undergoing significant layoffs, with employees not working on The Elder Scrolls or Fallout projects being particularly affected. This comes amid broader Xbox restructuring and potential studio closures for titles like Hellblade and South of Midnight, as executives cite revenue losses and rising hardware costs.
Report: Redundancies at Microsoft owned Zenimax have begun
Microsoft has reportedly begun significant layoffs and studio closures within its Zenimax Media division, which includes Bethesda, id Software, and Arkane Studios. Ninja Theory, Compulsion Games, and Double Fine Productions are also facing potential shutdowns. This news follows recent announcements about Xbox game exclusivity and a reported decline in profitability, indicating a major business reset for the brand.
Microsoft Apparently Already Knew It Would Be Closing Ninja Theory When It Announced Senua
Microsoft reportedly planned to close or spin off Ninja Theory before the studio announced its new game, Senua, at the Xbox Games Showcase. This decision was part of a broader strategy following a "reset" memo from Xbox CEO Asha Sharma, citing declining revenues despite significant investments. While Microsoft is reportedly exploring buyouts for Ninja Theory, Compulsion Games, and Double Fine, the future of these studios and their franchises remains uncertain.
Newly Revealed PS5 Action Adventure Game Already in Trouble
A newly revealed PlayStation 5 action-adventure game, Senua, from developer Ninja Theory, may be in jeopardy. Reports suggest Microsoft is considering shutting down or selling Ninja Theory, with the game's announcement at the Xbox Showcase potentially intended to attract a buyer. The future of the studio and the game remains uncertain.
It just keeps getting worse—Microsoft reportedly already had Ninja Theory in its crosshairs while pushing the…
Microsoft is reportedly planning to close or divest Ninja Theory, despite recently revealing a new game from the studio. An anonymous source suggests this decision was made before the game's announcement, with the reveal intended to attract potential buyers. This move adds to concerns about Microsoft's commitment to its studios and its overall strategy in the gaming industry.
Former PlayStation boss says Xbox shows a "basic misunderstanding" of the games industry amid leadership changes, mixed messaging, and reports of studio closures
Former PlayStation boss Shawn Layden believes Xbox's recent inconsistent actions, including shifts in publishing strategy and reports of studio closures like Ninja Theory, indicate a fundamental misunderstanding of the games industry. Despite denials from figures like Matthew Ball, these moves have fueled an identity crisis for Xbox, leading to confusion among players and raising concerns about the company's health.
Microsoft was reportedly already planning Ninja Theory split when it announced Senua at the Xbox Games Showcase, with…
Reports suggest Microsoft was planning to split from or shut down Ninja Theory around the time its new game, Senua, was revealed at the Xbox Games Showcase. This comes amid wider rumors of layoffs and potential closures for other Xbox studios like Double Fine and Compulsion Games. The future of Senua and Project Mara is now uncertain.
Xbox already planned to shut down Ninja Theory before Senua reveal claims report
A report claims Microsoft planned to close Ninja Theory before the reveal of their new game, Senua, amidst mounting fears of widespread Xbox layoffs. The announcement of Senua, a multiplatform title for PlayStation 5, Xbox Series X/S, and PC, may have been an attempt to attract investors prior to the studio's potential closure or sale. This news follows reports of executive departures and potential closures of other Xbox studios.
Xbox's Early Momentum from Asha Sharma is Fading Fast
Xbox's early positive momentum under Asha Sharma appears to be fading due to rumors of studio closures, including Ninja Theory, and the recent shuttering of Arkane Austin and Tango Gameworks. This trend is eroding player trust and potentially jeopardizing the success of future initiatives like Project Helix, which aims to unify Xbox's hardware, software, and services.
Xbox Shows a “Basic Misunderstanding” of the Gaming Industry, Says Former PlayStation Exec
Former PlayStation Studios boss Shawn Layden believes Xbox's recent actions, including impending layoffs and studio closures, demonstrate a fundamental misunderstanding of the gaming industry. This perspective arises amidst reports of significant financial losses and strategic shifts within Microsoft's gaming division, impacting studios like Ninja Theory, Double Fine, and Compulsion Games.
