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5 Game Studios Microsoft Might Shut Down (& What Games They've Been Working On)

Summary by ComicBook.com
Courtesy of Arkane Studios Summer 2026 has been a period of unfortunate news in gaming, particularly surrounding Microsoft, Xbox, and their associated studios. After recent leadership changes in Xbox’s gaming division, Microsoft has begun to re-evaluate where it should allocate its resources, leaving many development teams on the chopping block for either mass layoffs or entire studio closures. Based on recent reports, some specific teams are at…
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Next week, Xbox will run a part of the reset that Asha Sharma and Matt Booty announced for the next 100 days for the brand. They have implemented a 'startup' system, which has its advantages, but also its weak points.As the division's new CEO, Sharma wants to work fast, but it's not easy when you have to find buyers for some of the studios threatened with a possible shutdown. These are Compulsion Games, Ninja Theory, Double Fine and Undead Labs.…

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The video game division of the American group is about to undergo a profound reorganization, marked by studio closures, massive layoffs and strategic reorientation.

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Microsoft is preparing for another deep reorganization of Xbox, and all indications are that several internal studios may face significant changes, including closures, sales, mergers, and layoffs. Despite celebrating its 25th anniversary in the video game world in 2026, Microsoft continues to show that it lacks a defined strategy for Xbox, now preparing for yet another, and potentially the largest, restructuring in the division's history. After …

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echoboomer.pt broke the news on Thursday, July 2, 2026.
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