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Microsoft and Xbox may soon close several game studios, including ... Click for next article Ninja Theory, the developer behind the Hellblade games, is reportedly one of several studios "at risk of being shuttered" by Microsoft and Xbox. (Image credit: Xbox Game Studios) Copy link Facebook X Reddit Pinterest Flipboard Bluesky Threads Email Share this article 0 Join the conversation Follow us Add us as a preferred source on Google Newsletter Subscribe to our newsletter Hours after it was reported that Xbox's South of Midnight developer Compulsion Games may soon be closed by Microsoft , a new report has come to light that suggests several other Xbox Game Studios developers may be on the chopping block as well. According to Bloomberg and its sources familiar with Microsoft's plans, both Double Fine Productions and Ninja Theory are, like Compulsion Games, "at risk of being shuttered," and are in "active negotiations to spin off" from Xbox. Reportedly, "several other studios" are in this situation as well. Double Fine is best known for Psychonauts, Keeper, and its new pottery-based party brawler Kiln, while Ninja Theory is responsible for the dark fantasy action-adventure series Hellbl…

Double Fine, Compulsion Games and Ninja Theory: The three studios that ... A new report claims that several internal teams would be negotiating alternatives to Microsoft's restructuring. More stories in the category News If you want to save big on Xbox games, mark the date of the summer deals on the Store These are all the games that arrive on Xbox this week The real reason why Fable has taken so many years Don't miss anything and follow us on Google News! The evening is being particularly eventful for Xbox, and a new report from Bloomberg adds more uncertainty about the future of some of its studios. According to the information published by the US media outlet, several internal Microsoft teams would be exposed to possible closures within the reorganization process being prepared by the company. The situation would be so delicate that some studio executives would already be exploring formulas to continue their activity outside of the Xbox structure. Double Fine, Compulsion, and Ninja Theory would be among the affected studios According to Bloomberg’s information, Double Fine , Compulsion Games , and Ninja Theory would be among the teams whose future is being evaluated by Microsof…

Xbox is closing down Hellblade creator Ninja Theory Gaming News Xbox Xbox is closing down Hellblade creator Ninja Theory Compulsion Games and Double Fine are also in ‘active negotiations’ about spinning off. Compulsion Games and Double Fine are also in ‘active negotiations’ about spinning off. by Jay Peters and Tom Warren Jun 15, 2026, 9:13 PM UTC Link Share Gift Image: Ninja Theory Xbox is closing down Ninja Theory, the studio behind the Hellblade series, a source tells The Verge . Staffers were told on a call on Monday about the closure, but they are hoping the studio will find a buyer. The closure comes as “several” Xbox studios at Microsoft, including Compulsion Games and Double Fine, are in “active negotiations” about spinning off, Bloomberg reports . The closure and negotiations follow Xbox CEO Asha Sharma and chief content officer Matt Booty warning last week of a “reset” at Xbox , laying out several challenges facing Xbox’s business — including that it had “over extended” with its studio system and the hardware component crisis is significantly driving up prices. Kotaku reported earlier on Monday that Microsoft was planning to shut down Compulsion, though it noted in an up…

Xbox is closing down Hellblade creator Ninja Theory Xbox is closing down Ninja Theory, the studio behind the Hellblade series, a source tells The Verge. Staffers were told on a call on Monday about the closure, but they are hoping the studio will find a buyer. The closure comes as "several" Xbox studios at Microsoft, including Compulsion Games and Double Fine, are in […]

BREAKING: Several Xbox studios, including Compulsion, Ninja Theory and Double Fine, are negotiating with Xbox as they try to avoid closure. Some or all could spin off. Lots still in flux as many studios remain unsure about what's happening. Here's the latest: www.bloomberg.com/news/article...

Xbox Is Reportedly About To Shut Down South Of Midnight Studio ... Xbox Is Reportedly Planning Mass Layoffs As They Look To “Reset” The Business 5 days ago Gears Of War: E-Day Preview – Back To Beginnings 5 days ago Xbox Is Reportedly About To Shut Down South Of Midnight Studio Compulsion Games Alongside Other Studios I hate it here. Brodie Gibbons 6 hours ago Press Start may receive a commission when you buy from links on our site at no extra cost to you. UPDATE: It is now being reported by Bloomberg that Double Fine as well as Ninja Theory are also in active discussions to be closed down unless they can find a buyer. Original Story: After word of Xbox’s looming “reset” emerged last week in the form of a letter published by Xbox’s Asha Sharma and Matt Booty, Kotaku is reporting that the first studio on the chopping block might be Compulsion Games, the studio behind titles including Contrast, We Happy Few, and South of Midnight. Nothing has been formally confirmed by Xbox; however, Kotaku’s report has been updated to indicate that negotiations are ongoing between the two, leading to speculation that Compulsion Games could be attempting to buy back its independence, just as Toys fo…

Several Xbox Studios at Risk of Closure, in Talks to Become Independent Update #2 [ Mon 15th Jun 2026, 9:30pm ]: In another update, this time from Bloomberg journalist Jason Schreier, it's stated several Xbox first-party developers are at risk of closure and are currently in talks about being spun out to become independent. Among the teams, three of the developers specifically named are Compulsion Games ( We Happy Few , South of Midnight ), Double Fine ( Psychonauts ), and Ninja Theory ( Hellblade ). Sources speaking to Bloomberg claim the studios are "in active negotiations to spin off as they try to thwart closure". Subscribe to Push Square on YouTube 170k Update #1 [ Mon 15th Jun 2026, 6:30pm ]: This is a fast developing story, and Kotaku has just added the following update to its article: “According to one source at the studio, Compulsion leadership is in ‘negotiations’ with Microsoft over the studio’s fate, but the details of these negotiations have not been disclosed.” These negotiations could potentially culminate in the studio regaining its independence, although we’ll need to wait for further updates to know for sure. Original Story: This weekend has been awash with rumou…

Xbox is reportedly closing Ninja Theory, Double Fine and Compulsion ... Gaming Xbox Xbox is reportedly closing Ninja Theory, Double Fine and Compulsion Games Studio leaders are trying to buy themselves back before being shut down for good. By Jessica Conditt June 15, 2026 7:18 pm EST Engadget Xbox is preparing to shut down or sell at least three of its studios — Double Fine, Ninja Theory and Compulsion Games — according to reports from The Verge and Bloomberg on Monday. Ninja Theory employees were informed on Monday that the studio would be closing, according to The Verge , but the team is attempting to find a buyer that can keep them operational. Ninja Theory is the studio behind the Hellblade series and it was featured in the recent Xbox Summer Game Fest showcase, revealing a new entry due in 2027. Double Fine is the legendary studio behind the Psychonauts games, Brütal Legend , Broken Age , Keeper and all manner of LucasArts adventures, founded by Tim Schafer and friends in 2000. Double Fine leaders are in active negotiations to buy themselves back from Xbox rather than be closed altogether, Bloomberg said. Compulsion Games is in a similar position, according to the report. Com…

Former Xbox studios Double Fine and Compulsion will keep games after going indie Microsoft is spinning off four of its Xbox game studios - Compulsion Games, Double Fine Productions, Ninja Theory, and Undead Labs - as part of the restructuring announced today. However, two that are going independent, Double Fine and Compulsion, will get to keep their franchises and games catalog, according to Xbox CEO Asha Sharma. "Compulsion […]