Insider: Two Xbox Studios ‘At Risk’ of Closure in 2026

Insider Gaming reporter Mike Straw posted on social media that two Xbox studios are “at risk of being closed” in 2026, and he added the studios he heard about are “not Obsidian or Rare.”

Straw specified the year 2026 but did not identify the studios. He described the information as a report he had received and offered no further details on timing or the source of the claim.

The allegation has spread across social platforms and forums, prompting speculation about which internal teams could be affected and how any closures might influence upcoming projects.

Microsoft and the Xbox Game Studios group have not confirmed planned closures and have not released a statement addressing the report.

Earlier reporting noted the possibility of job cuts and changes to the studio lineup, but those accounts did not name specific teams or provide firm timelines.

Straw’s posts did not explain reasons for the alleged risk or link the claim to financial targets or project cancellations. No public evidence has been presented tying the rumor to particular operational decisions.

Xbox Game Studios includes multiple first-party developers working on a range of titles; formal studio closures would have operational and staffing consequences.

At present the social-media reporting remains unverified. Studio employees and external partners have not publicly commented on the specific claim about two studios being at risk in 2026.