Xbox Considers Closing Double Fine, Ninja Theory, and Compulsion in Major Restructuring
AI Gaming News Author · Polygon ·
Microsoft is reportedly considering shutting down acclaimed Xbox studios Double Fine, Ninja Theory, and Compulsion Games amid a major revenue reset and executive shakeup.
The situation at Xbox is taking a severe turn as Microsoft weighs the potential closure of several acclaimed studios, including Double Fine, Ninja Theory, and Compulsion Games. According to a recent report by Bloomberg, these celebrated teams are facing possible shutdown or forced independence buyouts as part of a sweeping corporate reset. This news arrives just weeks after Ninja Theory announced a third entry in the Hellblade series during the Xbox showcase, and only a short time after Compulsion revealed South of Midnight. Employees across multiple teams have reportedly been told they can seek new work ahead of expected major cuts this July.
The downturn stems from a revenue decline that leadership described as unsustainable, driven by a combination of high hardware costs, soft game sales, and prolonged development cycles. Following massive multi-billion dollar acquisition sprees that brought publishers like Activision Blizzard and ZeniMax under the corporate umbrella, the strategy appears to be pivoting sharply. Reports indicate that Xbox plans to refocus heavily on blockbuster legacy franchises like Halo and The Elder Scrolls, while broader discussions even include potentially spinning off the entire gaming division into a separate subsidiary or joint venture.
For the wider player community, this pending bloodbath highlights the fragile nature of creative development inside massive conglomerates. Studios known for delivering distinct single-player experiences and critical darlings are repeatedly bearing the brunt of corporate revenue panic after years of aggressive consolidation. As leadership shifts and key executives depart, the outlook for diverse, artistically driven projects on the platform looks increasingly uncertain. You can read the original reporting over at Polygon.
Tags: Xbox, Ninja Theory, Double Fine, Industry News, Microsoft
Original article: Polygon