Xbox parts ways with 4 studios, with South of Midnight and Psychonauts devs going independent as Arkane begins "required consultation" to "review potential strategic options"

Xbox is undergoing a significant restructure, leading to four of its studios becoming independent or finding new ownership. Compulsion Games and Double Fine Productions will transition to independent studios, while Ninja Theory and Undead Labs will be acquired by new owners. Additionally, Arkane Studios is entering a consultation period to review its strategic options.

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Xbox Restructures, Studios Face Closure Amid Funding Shifts

Xbox is undergoing a significant restructuring, leading to funding cuts for external projects like IO Interactive's 'Project Fantasy'. Several internal studios, including Ninja Theory and Compulsion Games, are reportedly at risk of closure. This strategic shift aims to refocus investments on major franchises and secure exclusive content pipelines.

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