Xbox weighs closing Double Fine, Ninja Theory and other studios

Microsoft is considering shutting down several acclaimed Xbox studios, including Double Fine, Ninja Theory and Compulsion Games, Bloomberg reported. Compulsion is the studio behind South of Midnight, and Ninja Theory only recently announced a third Hellblade game, titled Senua, during the Xbox Games Showcase on June 7.

Bloomberg said the studios would have an opportunity to buy back their independence from Microsoft, but that even a buyback would likely lead to significant layoffs. Those three studios are not the only ones reportedly at risk; employees at many Xbox teams have been given permission to seek new work.

Newly appointed Xbox CEO Asha Sharma and chief content officer Matt Booty told employees the division is in a revenue decline “that cannot continue,” citing high hardware prices, lower-than-expected game sales and lengthy development cycles. Several executives have recently departed the Xbox division, including former head of Xbox Game Studios Craig Duncan and former chief of staff Louise O’Connor.

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