Several Xbox Studios in Talks to Avoid Closure

Multiple studios owned by Xbox are in active negotiations with Microsoft about their futures as the company considers options that could include independence, sale or closure. The discussions involve Ninja Theory and other teams within Xbox’s studio group.

Ninja Theory announced a new Hellblade game, Senua, during the Xbox Game Showcase on June 7. People familiar with the matter say Microsoft had already planned to either sunset or split the studio before that reveal and presented the new title in part to attract investor interest in the studio and its intellectual property. It is not clear whether studio leadership took part in that approach.

Employees at Ninja Theory were told the studio might be closed, according to accounts from people close to the situation. Other studios named in the talks include Compulsion Games and Double Fine. Compulsion’s leadership has been engaged in negotiations with Microsoft; that studio released South of Midnight on the Switch 2 in March. A studio working on a high-profile Marvel title has also expressed concern about its future.

Details about the negotiations and any decision timelines remain limited. Sources indicate each affected team may be offered a chance to become independent or find another buyer before permanent closures occur.

One reporter wrote that “the Xbox of July will look drastically different” from the “Xbox of June,” reflecting expectations that further changes could follow quickly.

Microsoft has not publicly detailed plans for the studios involved, and company spokespeople have not confirmed specific outcomes. Studio employees and leadership are continuing internal discussions and, where reported, are seeking buyers or alternatives to closure.

The situation is ongoing. Potential sales, restructurings or closures could proceed if interested parties emerge and agreements are reached.