Overview
- Multiple outlets reported on Monday that Microsoft-owned studios including Compulsion Games, Ninja Theory, and Double Fine are at risk of closure and are negotiating to buy themselves back or find buyers to operate independently.
- The Verge reported that Ninja Theory staff were told the studio would close, while Bloomberg and others say negotiations to spin off studios are active but not guaranteed to succeed.
- Employees at affected studios have been notified the situation is in flux and were given permission to look for other work, and some developers have publicly posted they are seeking new jobs.
- Senior Xbox executives including Xbox Game Studios head Craig Duncan have recently departed, and multiple reports say larger layoffs and budget cuts are expected after Microsoft’s fiscal year ends on June 30.
- Xbox leaders have framed the moves as part of a 100‑day 'Xbox Reset' after more than $20 billion in content investments, citing a near $500 million revenue decline and sharply higher component costs, and they plan to prioritise major franchises and faster, more profitable releases.