Xbox exodus: Microsoft wants to close several first-party game studios

Microsoft has apparently decided to close at least three important in-house game development studios. Specifically, Compulsion Games, Ninja Theory and Double Fine are said to be affected. The teams are supposedly trying to save themselves by becoming independent.

At least three well-known studios affected

Suddenly everything seems to be happening much faster than you might have expected. According to a report by the US Economic Service, Microsoft should Bloomberg have decided to close a number of the game development teams united under the Xbox Game Studios umbrella. Three well-known studios are said to be affected, although other teams could also be added. Specifically, Microsoft reportedly wants to close Compulsion Games, Ninja Theory and Double Fine. Ninja Theory became known for the “Hellblade” series, while Compulsion Games attracted attention with “We Happy Few” and “South of Midnight”. Double Fine became known to game fans through the “Psychonauts” series, “Brutal Legen” and “Keeper,” among others.

Studios are fighting for survival

The planned studio closures are likely to be part of new Xbox boss Asha Sharma’s efforts to implement the “reset” of Microsoft’s gaming division announced last week. What this means is that they want to make the group’s gaming ecosystem more attractive again. At the same time, Sharma is also trying to massively reduce costs in order to get the Xbox department back into the black. Like the US games magazine Kotaku It has now been reported that the development studios are at least partially trying to counteract a closure.

There are currently active negotiations with the parent company Microsoft about some form of spin-off of the teams. Ultimately, the studios Compulsion Games and Double Fine want to find a way to continue working independently in the future, it is said. The teams now threatened with closure probably did not contribute sufficiently to the Xbox division’s sales. The games industry has been plagued by a large number of layoffs for some time because the economic situation of many providers is anything but rosy, as Ubisoft, for example, has repeatedly demonstrated with studio closures and layoffs.