Undead Labs
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Documents about Undead Labs
Article
Xbox Plans 3,200 Job Cuts and Studio Closures
Xbox is undergoing a comprehensive corporate restructuring characterized by the elimination of 3,200 positions and the divestment of five prominent development studios, including Double Fine, Compulsion Games, Ninja Theory, Undead Labs, and Arkane Lyon.
- Xbox plans to cut 3,200 jobs across its business and divest five studios as part of a major restructure. This includes Double Fine Productions, Compulsion Games, Ninja Theory, Undead Labs, and Arkane Lyon.
- Double Fine Productions and Compulsion Games will return to independence, retaining their IP and back catalogs, with runway funding from Microsoft. Ninja Theory and Undead Labs have found new, unnamed owners who will acquire their IP and back catalogs, though deals are not yet closed.
- Xbox's restructuring is driven by declining revenue, profits, and player numbers over the past five years, despite $20 billion in game development investment. Its accountability margin is only 3%, and it lost 64 cents for every dollar invested in independent studios.
The Game BusinessJul 2026
Article
Xbox's Reverse-2018
The article examines the recent contraction of Microsoft’s Xbox studio portfolio, tracing a pattern of aggressive acquisition followed by rapid restructuring.
- Microsoft’s gaming division is undergoing significant restructuring following the $69 billion acquisition of Activision Blizzard, resulting in the layoff of 1,900 employees, representing nearly 9% of its workforce.
- The Xbox gaming division is currently operating at a 3% profit margin, falling far short of its internal 30% target.
- Multiple studios acquired during Microsoft’s expansion spree—including Compulsion Games, Double Fine, and Ninja Theory—face potential closure or spin-offs as part of the current contraction.
Game FileJun 2026
Article
Xbox Game Studios Boss Craig Duncan Steps Down
Craig Duncan has stepped down as the head of Xbox Game Studios after serving in the role for approximately 18 months.
- Craig Duncan has stepped down as the head of Xbox Game Studios after more than 18 months in the role, having replaced Alan Hartman in November 2024.
- Duncan oversaw 14 studios including Halo Studios, The Coalition, and Rare, and his studios will now report to Xbox Chief Content Officer Matt Booty until a replacement is found.
- Louise O’Connor, Xbox Game Studios chief of staff, is also departing the company; she joined Rare in 1999 and became chief of staff in September 2025 after leaving Rare following the cancellation of Everwild.
The Game BusinessJun 2026