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Several Xbox Studios at Risk of Closure, in Talks to Become Independent

Several Xbox first-party studios, including Compulsion Games, Double Fine, and Ninja Theory, are reportedly at risk of closure and are in negotiations with Microsoft to spin off as independent entities. This news follows comments from CEO Satya Nadella about Xbox needing to become a sustainable business. Compulsion Games' title 'South of Midnight' was recently released on PlayStation 5.

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Xbox Faces Major Layoffs and Potential Studio Closures

Xbox is reportedly planning significant layoffs and possible studio closures in July. Several first-party developers, including Rare, Bethesda, Arkane, Compulsion Games, Double Fine, and Ninja Theory, are rumored to be at risk. These moves are seen as a strategic shift by new management to address declining revenue and improve profitability.

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