Reports indicate that Xbox is considering the closure or sale of several studios, including Ninja Theory, Double Fine, and Compulsion Games. The announcement comes amid negotiations as studio leaders attempt to secure buyouts to prevent shutdowns. Ninja Theory, recognized for its work on the Hellblade series, was informed of its impending closure on June 15, 2026, but employees are actively seeking a buyer to maintain operations.
Double Fine, founded in 2000 by Tim Schafer and others, is known for popular titles such as Psychonauts and Brütal Legend. The studio's leadership is currently engaged in discussions to acquire their studio back from Xbox. Similarly, Compulsion Games, the Montreal-based developer of We Happy Few and South of Midnight, is facing a parallel situation and is also exploring options for its future.
The turmoil at Xbox Game Studios reflects broader instability, with multiple studios under the Xbox banner reported to be at risk of closure. Microsoft, which has pursued an aggressive acquisition strategy since 2018, has faced significant layoffs within its gaming division following these expansions.