Xbox in talks to close Double Fine, Ninja Theory and Compulsion Games

Three Xbox studios — Double Fine, Compulsion Games and Ninja Theory — face possible closure, with employees able to seek new work as leadership negotiates to try to save what they can. Bloomberg reported the developments. Earlier reports said Xbox was preparing to shutter South of Midnight developer Compulsion Games, with studio leadership in active negotiations over its fate.

Bloomberg has since reported that both Psychonauts maker Double Fine and Hellblade developer Ninja Theory are in similar situations, despite the latter having just revealed a new game for release next year. A potential outcome is that the studios could go independent, though that would likely still entail heavy job losses.

The situation follows an open email from Xbox CEO Asha Sharma and Microsoft Game Studios head Matt Booty, who said the business had "over extended" itself in studio acquisitions, tried to juggle too many different platform strategies and had "not adequately funded" its studios.

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