Xbox shouldn't close Ninja Theory, Compulsion and Double Fine

Microsoft is considering closing three of its studios — Double Fine, Ninja Theory and Compulsion Games — and other teams across its portfolio may also be at risk. Undead Labs hasn’t shipped a game since its 2018 acquisition, Obsidian’s recent releases underperformed, and Rare’s big project Everwild was cancelled.

Studios are being offered the option to buy back their independence or find new homes, but even in the best scenarios large-scale layoffs look likely, and July appears set to bring redundancies across Xbox, Blizzard, Activision and Bethesda. Mojang and Minecraft stand apart.

Minecraft functions more like enterprise software or a long-running service: players, creators and streamers sustain its relevance, and Microsoft understands how to shepherd that kind of product. Most other games, however, depend on continual creative risk and human invention to connect with players, and that model hasn’t fit well with Microsoft’s institutional strengths.

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