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Microsoft Xbox Restructures, Closes Multiple Studios

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3 months ago
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SummarySYNTHESIZED

Microsoft's Xbox division is undergoing a significant restructuring. Several studios, including Arkane, Compulsion Games, Ninja Theory, and Double Fine, face closure or spin-offs. Reports suggest these moves are part of a broader effort to improve economic stability within the division.

Coverage across 3 outlets

4 articles
Eurogamer

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.

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Eurogamer

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.

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Rock Paper Shotgun

Another Xbocalypse begins: Microsoft are reportedly closing or spinning off Double Fine, Ninja Theory and Compulsion

Microsoft's Xbox division is reportedly considering closing or spinning off studios Double Fine, Ninja Theory, and Compulsion Games as part of a broader business restructuring. This follows recent layoffs, game cancellations, and studio closures across Xbox. The affected studios are known for critically acclaimed but not commercially massive titles like Psychonauts, Senua's Saga: Hellblade II, and South of Midnight.

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Gamespot

Xbox Closing We Happy Few, South Of Midnight Developer Compulsion Games – Report

Microsoft is reportedly planning to close Canadian developer Compulsion Games, known for We Happy Few and South of Midnight, as part of a broader restructuring of its Xbox division. This move could impact over 90 employees, and follows recent reports of potential closures for Arkane Studios. Xbox CEO Asha Sharma alluded to difficult changes ahead to improve economic stability.