Several Xbox Studios at Risk of Closure, in Talks to Become Independent
Key Points:
- Several Xbox first-party developers, including Compulsion Games, Double Fine, and Ninja Theory, are reportedly at risk of closure and are in active negotiations to spin off as independent studios to avoid shutdown.
- Compulsion Games' leadership is in talks with Microsoft regarding the studio's future, with the possibility of regaining independence, though no official details have been disclosed yet.
- Rumors of Xbox studio closures have intensified amid leadership changes, including the resignation of Xbox Game Studios boss Craig Duncan and Chief of Staff Louise O’Connor.
- CEO Satya Nadella emphasized the need for Xbox to become a sustainable business after 25 years of subsidies, highlighting challenges in monetizing Xbox games compared to platforms like YouTube.
- While layoffs and closures remain unconfirmed, employees from affected studios, such as Compulsion Games, have begun seeking new job opportunities, signaling uncertainty within the teams.