Xbox Studios Face Closure
Xbox is reportedly closing or selling studios Double Fine, Ninja Theory, and Compulsion Games, with studio leaders negotiating buybacks to avoid shutdown.
Key points
- Xbox Game Studios is considering closing or selling Double Fine, Ninja Theory, and Compulsion Games due to financial decline.
- Studio leaders at Double Fine, Ninja Theory, and Compulsion Games are in active negotiations to buy themselves back from Xbox.
- The restructuring is led by Asha Sharma, Xbox's chief executive, who aims to reverse years of financial decline with significant layoffs planned for July.
- The three studios were acquired by Microsoft in 2018 and have released games such as Hellblade, Psychonauts, and South of Midnight.
- Even if buyback negotiations succeed, many employees at the studios are expected to lose their jobs.
Xbox Game Studios is undergoing a significant restructuring, with several studios facing closure or sale. Double Fine, Ninja Theory, and Compulsion Games are among those affected, with their leaders negotiating to buy themselves back from Xbox. The move is part of a broader effort by Xbox's chief executive, Asha Sharma, to reverse years of financial decline. The studios have released notable games such as Hellblade, Psychonauts, and South of Midnight. However, despite their critical success, the studios' financial performance has been a concern for Xbox. The buyback negotiations are ongoing, but even if successful, many employees are expected to lose their jobs.
Sources
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