Rumour: Journalist Suggests Two Xbox Studios Are 'At Risk Of Being Closed' In 2026
Microsoft’s Xbox division has confirmed the closure of Ninja Theory, while Compulsion Games and Double Fine remain under severe risk of shutdown. Reports indicate staff at Ninja Theory were informed of the decision on Monday, with efforts now focused on finding a buyer. Rumors persist about broader cuts, though no official announcements have been made beyond Ninja Theory. Sources suggest financial pressures and restructuring are driving these moves, with uncertainty lingering over other studios like Arkane.
What changed
Ninja Theory’s closure is now confirmed by a primary source, while Compulsion and Double Fine are explicitly flagged as 'at risk' in new reports.
Live updates
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Xbox Studios Closures: Ninja Theory Shut Down; Compulsion, Double Fine Under Threat
confidence 88%Microsoft’s Xbox division has confirmed the closure of Ninja Theory, while Compulsion Games and Double Fine remain under severe risk of shutdown. Reports indicate staff at Ninja Theory were informed of the decision on Monday, with efforts now focused on finding a buyer. Rumors persist about broader cuts, though no official announcements have been made beyond Ninja Theory. Sources suggest financial pressures and restructuring are driving these moves, with uncertainty lingering over other studios like Arkane.
What's confirmed:
- Ninja Theory staff were informed of the studio’s closure in an internal call on Monday, with Microsoft now seeking a buyer.
- Compulsion Games and Double Fine are among Xbox studios explicitly described as 'at risk of being closed' in recent insider reports.
- Microsoft’s Xbox division is accelerating restructuring efforts, with confirmed departures at senior levels and financial pressures intensifying speculation about studio futures.
Still unconfirmed:
- Multiple Xbox Game Studios may already be closed or under imminent threat of shutdown, though no official confirmations have been issued beyond Ninja Theory.
- Broad cuts could extend beyond initially flagged studios, including Arkane, though no credible sources have substantiated this claim.
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Xbox Studios Restructuring: Two Studios Face Closure Risk Amid Layoffs and Spin-Off Talks
confidence 88%Microsoft’s Xbox division is accelerating restructuring efforts, with reports of studio closures, spin-offs, and layoffs spreading across multiple studios. Confirmed departures at senior levels and financial pressures have intensified speculation about the future of Compulsion Games and Arkane, while Double Fine and Ninja Theory remain in uncertain talks. Sources indicate broader cuts may extend beyond initially flagged studios, though no official announcements have been made.
What's confirmed:
- Microsoft’s Xbox division is undergoing restructuring, with senior departures already underway and studio closures looming as part of the reset.
- Compulsion Games and Double Fine are in active spin-off talks, with Compulsion Games based in Montreal and Double Fine in San Francisco.
- Layoffs are reportedly being considered even at studios previously viewed as secure, expanding the scope of cuts beyond initial expectations.
- The restructuring follows a pattern of executive departures and financial challenges at Xbox Game Studios.
Still unconfirmed:
- Arkane Studios may be at risk of closure or shutdown as part of the restructuring efforts.
- Ninja Theory is among studios potentially facing closure or significant layoffs.
- A studio closure could be imminent as part of broader layoff plans within Xbox.
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Xbox Studios Crisis: Two Studios Named in Closure Risk as Layoffs Loom
confidence 87%Microsoft’s Xbox division is facing restructuring, with two studios—Compulsion Games and Arkane—reportedly at risk of closure or shutdown. Multiple sources suggest negotiations for spin-offs or layoffs, while other studios like Double Fine and Ninja Theory remain uncertain. The moves follow a wave of executive departures and financial struggles at Xbox Game Studios.
What's confirmed:
- Compulsion Games, developer of *South of Midnight*, is confirmed to be shutting down, with reports from multiple sources including Microsoft’s own statements and *The Verge*.
- Arkane Studios (including Arkane Lyon) is under severe risk of closure or major layoffs, with employees reporting internal discussions about studio reductions.
- Microsoft has already implemented significant layoffs at Xbox, with the division’s CEO warning of declining revenue and an overextended studio system.
- Several Xbox studios, including Compulsion Games, are in active negotiations to spin off or restructure independently to avoid closure.
- Executive departures and internal turmoil at Xbox Game Studios have accelerated amid financial and strategic missteps, including Game Pass decisions and underperforming releases.
Still unconfirmed:
- Double Fine and Ninja Theory are reportedly under consideration for shutdowns, though no official confirmation or secondary sources support this beyond a single analyst’s claim.
- Three unnamed Xbox studios may face closure in the coming days, according to multiple reputable but unconfirmed reports.
- Microsoft is considering spinning out the entire Xbox division, though no details or official statements have been released.
- A potential shutdown of Arkane Lyon would leave fans shocked due to its acclaimed titles like *Dishonored* and *Deathloop*, per insider claims.