Xbox Is Closing Ninja Theory, and Double Fine and Compulsion May Not Be Far Behind
- Microsoft is reportedly planning to shut down Montreal-based Compulsion Games, the developer behind last year's award-winning South of Midnight.
- Amid financial struggles, Xbox CEO Asha Sharma and chief content officer Matt Booty warned of a company 'reset,' citing an overextended studio system that has failed to adequately fund key franchises.
- Potential layoffs could impact more than 90 staff, while Xbox Game Studios head Craig Duncan resigned today, just hours after South of Midnight won a Peabody Award.
- Although details remain undisclosed, Compulsion leadership is currently in 'negotiations' with Microsoft over the studio's fate as staff members post on social media seeking new employment.
- Sharma aims to reassess investment priorities for the next five years as Microsoft addresses a 3% profit margin and declining annual revenue across its gaming business.
68 Articles
68 Articles
First Xbox Studio Closures May Hit Creators of Multiple Critically-Acclaimed Games
New reports and leaks reveal a handful of critically-acclaimed studios that may currently be negotiating with Xbox to attempt to avoid full-on closures. Ninja Theory, Double Fine, and Compulsion Games Rumored to Be In Danger of Closing Although Xbox had a very exciting Xbox Games Showcase just a week ago, the company didn’t waste any time moving on from the game announcements and pivoting to plans for a massive corporate restructuring that could…
Xbox reportedly shuts down Ninja Theory as Microsoft explores major gaming restructuring
The studio behind the acclaimed Hellblade series is said to be closing, while other Xbox-owned developers are reportedly in talks to spin off amid a broader reset of Microsoft's gaming business.

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