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Xbox Intends to Close Several Studios at Once
Microsoft’s gaming division is currently facing a period of significant organizational instability, with reports indicating that the company is planning to close multiple internal studios.
- Microsoft is planning a significant downsizing of its Xbox division, with reports indicating that at least three major studios—Compulsion Games, Double Fine Productions, and Ninja Theory—are currently facing potential closure.
- Arkane Lyon, the developer currently working on Marvel’s Blade, has also been identified as a candidate for potential closure.
- The studios facing closure are currently in negotiations with Microsoft to buy themselves out and gain independence, though such a move would still involve significant internal layoffs.
Game World ObserverJun 2026
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