Multiple outlets report that Microsoft’s Xbox leadership is considering closing several first-party studios as part of an “Xbox reset.” Reported studios at risk include Double Fine and Ninja Theory, and Polygon also includes Compulsion Games among those potentially affected. The coverage characterizes the effort as a restructuring that could reduce or eliminate parts of Microsoft’s internal game development footprint.

While the articles describe concern that the studios are “at risk of closure” or being shut down, they do not present definitive outcomes in the information provided here. The reports frame the situation as ongoing and linked to broader company changes, rather than confirmed shutdown plans. No specific dates, final decisions, or details about the future of staff or projects are included in the excerpts summarized.

Together, the sources agree that Microsoft is weighing major changes affecting multiple well-known Xbox-aligned development teams, with Double Fine and Ninja Theory repeatedly cited as among the most prominent studios potentially targeted.