Several Xbox studios reportedly facing closure, including Ninja Theory, Double Fine, and Compulsion

Multiple Xbox studios, including Compulsion Games, Double Fine, and Ninja Theory, are reportedly in active talks with Microsoft to spin off and go independent in a last‑ditch attempt to avoid closure.

The details:

• As reported by Bloomberg, Compulsion, Double Fine, and Ninja Theory, the studios behind South of Midnight, Psychonauts, and Hellblade are at risk of closure under Microsoft ownership. As a result, the developers are negotiating buyouts that would let them leave Xbox rather than be shut down outright.
• Staff at several studios have reportedly been informed of the situation, given permission to start looking for new jobs, and told that even if the studios are saved from closure, significant layoffs are still likely to occur due to a lack of funding.
• Hellblade developer Ninja Theory is reportedly attempting to secure a buyer that would allow its team to stay together, with Double Fine and Compulsion also looking at potential management buyouts.
• The cuts, which will also affect other internal teams at Xbox, are a part of CEO Asha Sharma’s plan for a company-wide “reset” as it attempts to reduce expenses following years of declining revenue. It’s estimated that thousands of employees will be affected, with the layoffs coming shortly after June 30.