Ninja Theory, Double Fine, and Compulsion Games reportedly face shutdowns at Xbox

Microsoft’s Xbox Game Studios is reportedly shutting down or selling three of its studios—Ninja Theory, Double Fine, and Compulsion Games—according to reports from *The Verge* and *Bloomberg* published June 15, 2026. Employees at Ninja Theory were informed of the studio’s closure but are actively seeking a buyer to continue operations, despite recent announcements like *Senua*, the third *Hellblade* game, set for release in 2027. Double Fine, founded in 2000 by Tim Schafer, is negotiating a buyback from Microsoft to avoid closure, while Compulsion Games, known for titles like *Contrast* and *South of Midnight*, is also exploring ways to remain operational outside Xbox ownership. Both studios are reportedly in talks to secure their futures independently. Bloomberg’s report suggests additional Xbox studios may face similar negotiations, though no specific names were disclosed. Xbox Game Studios oversees dozens of teams, including Arkane, Bethesda, Obsidian, and Activision Blizzard King, but the company has not publicly confirmed any closures or buyouts. The uncertainty follows years of aggressive expansion, beginning with acquisitions in 2018 and culminating in the 2022 purchase of Activision Blizzard. Microsoft’s push to consolidate its gaming portfolio has raised concerns about the stability of its first-party studios, despite recent high-profile announcements at events like Summer Game Fest 2026. No official statement has been released by Xbox regarding the reports, leaving the future of these studios uncertain. Employees and industry observers are closely monitoring developments as negotiations continue.