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Xbox In Talks To Close Double Fine And Ninja Theory, Too

Microsoft is negotiating spin-offs for Double Fine and Compulsion Games as Ninja Theory faces closure, with heavy job losses still possible.

  • Microsoft is closing Ninja Theory, the developer behind the Hellblade series, as staff were informed on Monday. Employees are hoping the studio finds a buyer to avoid total shutdown.
  • Xbox CEO Asha Sharma and Matt Booty warned of a "reset" last week, citing that Microsoft had "over extended" with its studio system. The company spent $20 billion on investments over five years.
  • Several studios including Compulsion Games and Double Fine are in "active negotiations" regarding potential spin-offs. Independent status would likely still result in heavy job losses for staff.
  • Head of Xbox Game Studios Craig Duncan resigned his position earlier today. The future of the new game, Senua, remains unclear following the studio closure announcements.
  • A major wave of layoffs is expected after Microsoft's fiscal year ends on June 30. These cuts follow internal warnings that the division had "not adequately funded" its studios to be competitive.
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Microsoft will close the Ninja Theory study, according to internal sources to the American media The Verge. Read more

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Xboxdynasty broke the news on Sunday, June 14, 2026.
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