Xbox Studios Face Closures Amid Profitability Push
Multiple Xbox-owned game development studios, including Ninja Theory, Double Fine, and Compulsion Games, are reportedly at risk of closure. These potential shutdowns are part of a broader restructuring aimed at improving profitability and fiscal accountability. Some studios are reportedly negotiating to become independent entities, while layoffs are expected to begin soon.
Coverage across 8 outlets
Rumors claim Xbox wants to close Obsidian, but Jason Schreier says otherwise
Recent reports suggest Xbox is considering closing or selling several studios, including Obsidian Entertainment, due to financial pressures. However, journalist Jason Schreier has refuted claims that Obsidian is in negotiations to avoid closure, stating Xbox intends to keep the developer. The article also touches on frustrations within Xbox regarding leadership's focus on profitability and the impact of underperforming titles like Call of Duty: Black Ops 7.
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.
Hellblade Studio Ninja Theory to be Closed by Xbox, Negotiating to Go Independent – Rumor
Reports indicate that Xbox is planning to close Ninja Theory, the developer of the Hellblade franchise, as part of efforts to improve fiscal year accountability margins. Ninja Theory is reportedly negotiating to become an independent studio, similar to efforts by Double Fine and Compulsion Games. These potential closures and layoffs are expected to occur after Microsoft's fiscal year ends on June 30th, driven by declining revenues and rising hardware component costs.
Xbox is reportedly closing Ninja Theory, Double Fine and Compulsion Games
Reports indicate that several first-party Xbox studios, including Ninja Theory, Double Fine, and Compulsion Games, are at risk of being closed. This news follows recent trends of studio closures within the gaming industry.
Double Fine, Ninja Theory, and more Xbox studios reportedly at risk of closure
Microsoft's Xbox division is reportedly considering closure for several studios, including Double Fine and Ninja Theory, as part of a "reset" under new CEO Asha Sharma. While some studios like Double Fine are in negotiations to spin off, job losses are expected. This comes after a period of significant studio acquisitions by Microsoft, including Bethesda and Activision Blizzard.
Bloomberg Report Claims Ninja Theory, Double Fine And Compulsion Are Fighting To Avoid Closure
Reports suggest that Ninja Theory, Double Fine, and Compulsion Games are at risk of closure as part of Xbox's ongoing restructuring. These concerns arise amid declining sales and increasing development costs within Microsoft's gaming division.
Xbox is reportedly considering closing South of Midnight studio, Compulsion Games, with Double Fine and Ninja Theory also allegedly at risk
Xbox is reportedly considering closing several of its game development studios, including Compulsion Games, the developer of South of Midnight, and potentially Double Fine and Ninja Theory. Leadership at Compulsion Games is reportedly in negotiations regarding the studio's future, amidst broader reports of potential layoffs and restructuring within Microsoft's gaming division.
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.
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.
