Double Fine, Ninja Theory, and more Xbox studios reportedly at risk of closure

Compulsion Games isn't the only Microsoft studio fighting to stay open during the great "Xbox reset" announced last week by new Xbox CEO Asha Sharma; Double Fine, Ninja Theory, and "several other studios" are at risk of closure. Double Fine in particular is "in active negotiations to spin off," but job losses are expected even for studios that manage to buy their independence.

Double Fine was founded 26 years ago by former LucasArts developer Tim Schafer, and is best known for Brütal Legend, crowdfunded adventure game Broken Age, and the Psychonauts series, as well as candid documentaries about the gamemaking process. The studio recently released Kiln, a multiplayer party game, and Keeper, a puzzle adventure game about a sentient lighthouse.

Microsoft acquired Double Fine in 2019 under the direction of former Xbox CEO Phil Spencer, who oversaw a spree of studio purchases, including the landmark Bethesda and Activision Blizzard acquisitions.

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