Xbox Faces Major Studio Closures and Restructuring
The potential closure of three well-regarded studios signals a sharp pivot in Xbox's strategy from acquisition-driven growth to cost-cutting, with major implications for upcoming titles and the broader industry.
Reporting from 1 sources: 4Gamer.net.
Microsoft's Xbox division is planning a large-scale restructuring that may close multiple development studios, including Compulsion Games, Ninja Theory, and Double Fine Productions. Some studios are negotiating for independence or survival. Final decisions are expected after the company's fiscal year ends on June 30, 2026.
Microsoft's Xbox gaming division is preparing a sweeping restructuring that could shutter multiple development studios, according to reports from Bloomberg, Kotaku, and journalist Jason Schreier. Studios at risk include Compulsion Games, developer of the recently released 'South of Midnight'; Ninja Theory, known for the 'Senua' series; and Double Fine Productions, the 25-year-old studio led by Tim Schafer. Compulsion Games is in negotiations with Xbox to avoid closure, while Ninja Theory and Double Fine may be discussing spin-off arrangements to survive independently. The moves come amid poor financial performance in the Xbox business and pressure from Microsoft CEO Satya Nadella to improve profitability. Xbox CEO Asha Sharma and CCO Matt Booty acknowledged the difficulties in an internal email, and Xbox Game Studios head Craig Duncan resigned after less than two years. Final decisions are expected after the fiscal year ends June 30, 2026.
Synthesized by Yomimono from the 1 cited source below, including Japanese-language reporting where cited, then editorially reviewed before publishing.