Studio Closures
Ongoing coverage on Studio Closures.
Latest coverage
Rumours suggest multiple Xbox studios are to close
Rumors suggest Microsoft is planning to close multiple Xbox studios, including Compulsion Games and Arkane Studios, with potential spin-offs for Double Fine. The head of Xbox Game Studios, Craig Duncan, has also stepped down amid these reports. These potential closures follow underperforming titles like South of Midnight and Redfall, and broader industry discussions about the sustainability of day-one Game Pass releases.
Latest Microsoft victim reportedly being closed after releasing one game since Xbox acquisition
Microsoft is reportedly closing Compulsion Games, the studio behind We Happy Few and South of Midnight, eight years after acquiring it. This move is part of a larger downsizing within Xbox, which has seen thousands of layoffs and is expected to continue. South of Midnight, Compulsion's only release since the 2018 acquisition, received critical acclaim and awards.
Three Xbox Studios at Risk of Closure, in Talks to Become Independent
Reports indicate that three Xbox first-party developers, Compulsion Games, Double Fine, and Ninja Theory, are at risk of closure and are in negotiations with Microsoft to become independent studios. This news follows recent speculation about potential studio closures within Xbox Game Studios, with CEO Satya Nadella emphasizing the need for Xbox to become a sustainable business.
South of Midnight Maker Said to Be Shuttered by Xbox
Reports indicate that Xbox studio Compulsion Games, the developer behind South of Midnight, is set to be closed. This follows speculation about widespread layoffs within Microsoft's gaming division. While not officially confirmed, multiple employees have indicated they are seeking new work, and the studio's writer has also suggested its closure.
Xbox Game Studios Boss Is Out Ahead Of Reported Layoffs And Other Major Changes To “Reset” Xbox
Craig Duncan, head of Xbox Game Studios, is departing Microsoft after 15 years, along with his chief of staff Louise O'Connor. These changes precede reported layoffs and potential studio closures as Xbox CEO Asha Sharma aims to "reset" the business. The departures follow comments from Microsoft CEO Satya Nadella about the need to make Xbox a sustainable business.
Xbox Closing At Least 2 Studios by 2026 End, Including One “Which Could Come as a Shock” – Rumor
Insider Gaming reports that at least two Xbox Game Studios are at risk of being shut down by the end of 2026, with one closure potentially being a surprise. While specific studios like Obsidian and Rare are reportedly safe, titles that underperformed, such as Forza Motorsport and South of Midnight, could put studios like Double Fine Productions, Compulsion Games, and Turn 10 Studios at risk.
Xbox Game Studios Head Craig Duncan Has Stepped Down – Rumor
Xbox Game Studios head Craig Duncan and chief of staff Louise O’Connor have reportedly stepped down. Duncan stated in an email that his purpose was to serve the studios and teams, and he is proud of the launches achieved during his 20-month tenure. Matt Booty is expected to oversee Xbox Game Studios in the interim, amidst rumors of further layoffs and potential studio closures at Xbox.
Something for the Weekend – 13/06/26
Nintendo held a surprise Nintendo Direct, revealing a remake of The Legend of Zelda: Ocarina of Time for Switch 2, alongside new titles like Final Fantasy Resonance and Xenoblade Genesis. The week also saw reports of major layoffs at Xbox due to subscriber losses and Ubisoft closing two studios. Reviews included Crushed In Time and Midnight Saturn, with previews of Romestead and Dark Heresy.
Fumito Ueda says Bluepoint Games closure is sad and disappointing
Fumito Ueda, creator of Shadow of the Colossus, expressed disappointment and sadness over the closure of Bluepoint Games, a studio he collaborated with on the PlayStation 4 remake. Ueda learned of the closure through public reports and had hoped to work with Bluepoint again, potentially on a remake of Ico.
Playstack sold, Xbox announces business 'reset,' and is generative AI poisoning the well? - Patch Notes #56
Playstack has been sold to Integrated Media Company, with TruFin divesting its majority stake. Xbox announced a business 'reset' involving potential layoffs and studio closures, as confirmed by leaders Asha Sharma and Matt Booty. Concerns are also rising about generative AI's impact on the industry, with Take-Two's former head of AI, Luke Dicken, expressing worries about the current hype cycle.
Xbox’s ‘reset’ will reportedly mean layoffs, Ubisoft closes studios while hiding the news under embargo
Xbox CEO Asha Sharma and head of Xbox Game Studios Matt Booty discussed a 'reset' for the brand, hinting at upcoming layoffs. Concurrently, Ubisoft has shut down studios in Winnipeg and Belgrade, affecting approximately 380 employees, with additional layoffs in San Francisco. Reports also suggest Ubisoft embargoed news of these closures to the press.
Report – Ubisoft closes two studios with up to 380 job losses
Ubisoft has closed its studios in Winnipeg and Belgrade and is restructuring its Barcelona studio, resulting in up to 380 job losses. The Winnipeg studio focused on game engines like Snowdrop and Anvil, while Belgrade supported titles such as Ghost Recon and The Crew. The remaining Ubisoft Barcelona team will now concentrate solely on the Rainbow Six franchise.
Xbox announces business 'reset' amid reports of layoffs and studio closures
Xbox CEO Asha Sharma announced a business 'reset' for Microsoft's gaming division, signaling significant layoffs and potential studio closures following years of declining revenue. The memo cites a substantial increase in component costs for hardware and memory, exacerbated by past expansion choices, as a major challenge. Sharma and Xbox content chief Matt Booty aim to revive the company by evolving its business model and partnerships over the next 100 days.
Ubisoft is reportedly closing two studios and restructuring another, with around 380 people expected to be laid off
Ubisoft is reportedly closing its Winnipeg and Belgrade studios, impacting around 380 employees. Ubisoft Barcelona will now focus solely on Rainbow Six projects, and other departments, including Global Publishing and Ubisoft Montreal, are also affected by restructuring and layoffs. This marks the third round of job cuts at Ubisoft this year, following earlier reductions at Red Storm Entertainment and other studios.
Ubisoft lays off more staff and closes two studios
Ubisoft is closing its studios in Winnipeg and Belgrade and implementing further layoffs, potentially affecting up to 380 employees. The Winnipeg studio contributed to Rainbow Six Mobile, while Belgrade supported titles like Steep and Skull and Bones. Additional job cuts are expected at Ubisoft Barcelona, Ubisoft San Francisco, and within the Rainbow Six Siege development team.
Comings and Goings
Xbox is reportedly planning significant layoffs next month, while Ubisoft is closing multiple studios, leading to approximately 380 job losses. These events highlight a challenging period for the gaming industry.
Ubisoft closes another 2 studios, lays off hundreds more employees
Ubisoft is closing studios in Winnipeg and Belgrade and laying off approximately 380 employees as part of a cost-reduction strategy. The Ubisoft Barcelona studio will shift its focus exclusively to the Rainbow Six franchise, while other studios undergo restructuring into five creative houses. This follows departures of several high-level creatives and ongoing investment in artificial intelligence.
Ubisoft reportedly shuts down more studios and lays off staff in Barcelona and San Francisco
Ubisoft is reportedly implementing another round of layoffs and closing studios in Barcelona and San Francisco as part of cost-cutting measures. The company aims to reduce expenses while ensuring key franchises like Rainbow Six Siege are not negatively impacted.
Ubisoft closing studios in Winnipeg and Belgrade and cutting publishing roles worldwide, 380 jobs at risk
Ubisoft is closing its studios in Winnipeg and Belgrade and making further cuts to its global publishing team, affecting approximately 380 roles. The Barcelona studio will refocus exclusively on the Rainbow Six franchise. Separately, the Entertainment Software Association is warning that a proposed 'No Fakes Act' could harm the video game industry by failing to distinguish between harmful deepfakes and legitimate digital replicas used in game development.
Ubisoft closing Winnipeg and Belgrade studios and making further layoffs
Ubisoft is closing its Winnipeg and Belgrade studios and implementing further layoffs across its Barcelona studio and global publishing business. These cost-reduction measures could affect up to 380 roles and are part of a broader restructuring to focus on new strategic priorities. The Winnipeg studio was key in developing the Anvil and Snowdrop engines, while Belgrade focused on various PC and console titles.
