Overview
- Multiple outlets reported on Monday that Xbox plans to shutter Compulsion Games and that other first‑party studios, including Ninja Theory and Double Fine, are at risk of closure.
- Employees at the affected studios have been told the situation and given permission to look for other work, and several Compulsion staff have publicly posted they are seeking new roles.
- Studio leaders are reported to be in active negotiations with Microsoft to buy out or spin off their teams as a way to avoid shutdown, though such deals would likely require substantial staff cuts.
- The reported closures come as Xbox CEO Asha Sharma and chief content officer Matt Booty signalled a formal ‘reset’ after five years of heavy studio investment and falling margins, and executives including Craig Duncan and Louise O’Connor are leaving.
- If the reported changes proceed, they could trigger broad layoffs around the end of Microsoft’s fiscal year and mark a renewed push by Xbox to shrink costs and concentrate resources on its largest franchises.