Multiple reports say Microsoft’s Xbox Game Studios is planning or considering further closures and restructuring, amid wider turmoil in the division and executive departures. Bloomberg, as cited by other outlets, reports that Compulsion Games—developer of South of Midnight, We Happy Few, and Contrast—is among the studios targeted, with negotiations underway that could allow some studios to spin off from Xbox. Other studios mentioned in the talks include Double Fine and Ninja Theory, along with “several other studios.”
Several outlets also describe uncertainty around outcomes for staff. Bloomberg says many employees are likely to lose their jobs even if some studios become independent, and some workers have reportedly been told to begin looking for new roles. The Verge is cited as saying Microsoft has already opted to close Ninja Theory.
Separately, reporting points to leadership changes inside Xbox Game Studios, including the departure of Craig Duncan and his chief of staff, Louise O’Connor. The reports do not provide a clear scope or timing for any closures across the division, and some speculation includes the possibility of broader corporate changes affecting Xbox itself.
