Multiple reports say Microsoft is considering shutting down several studios within its Xbox Game Studios division, as part of a broader restructuring. Studios named as being at risk include Compulsion Games (developer of South of Midnight), Double Fine (Psychonauts), and Ninja Theory (Hellblade). Bloomberg reports that these studios, along with “several other studios,” are in active negotiations with Microsoft about how to avoid closure, including possible buyouts of Microsoft’s stake or finding outside financial backers to become new owners. However, sources also indicate that studio independence may not prevent job losses for many employees. Separate reporting suggests Microsoft has already opted to close Ninja Theory, while other outlets report that Compulsion Games is expected to be shut down.
The news comes alongside reported executive departures within the Xbox organisation, including the exit of Craig Duncan, head of Xbox Game Studios, and the departure of his chief of staff, Louise O’Connor. Microsoft’s broader plans for the Xbox business and the scale of any layoffs remain unclear, with some coverage also discussing the possibility of further structural changes to the Xbox operation.
