Ninja Theory, Double Fine, and Arkane Named for Impending Xbox Studio Closures
Ninja Theory, Double Fine, and Arkane are reportedly facing closure as Xbox shifts strategy toward blockbuster franchise growth.
Key Takeaways
- Multiple Closures Threaten Xbox Lineup: Acclaimed first-party studios Ninja Theory, Double Fine, and Compulsion Games are reportedly on the chopping block as part of a strategic corporate overhaul under Xbox CEO Asha Sharma.
- Massive Restructuring and Spin-offs: While some studios are actively negotiating to buy back their independence from Microsoft, reports confirm that significant layoffs are inevitable regardless of the buyout outcomes.
- Blockbuster Strategy Shift: Despite sweeping recent awards and showcasing major upcoming projects like Senua, Marvel’s Blade, and South of Midnight, these creative teams face closure as Xbox pivots its resources exclusively toward massive franchise growth.
Just two weeks ago, the gaming community was celebrating and excited for the future of the industry, with many game announcements and reveals during the summer showcases. However, the climate has turned bleak as headlines of studio closures fill the headlines.
Several Xbox Studios Face Closure
While Xbox restructuring has been rumored for the past few weeks, few would have expected it to potentially result in the closure of some of Xbox’s most successful and critically acclaimed studios. Earlier today, we reported on Compulsion Games reportedly heading to the chopping block, just weeks after South of Midnight swept multiple awards and earned widespread praise. Now, more studios have reportedly been named as facing the same fate.
First up is Ninja Theory, the studio behind the Hellblade series. The news was initially reported by Bloomberg and has since been corroborated by The Verge. According to earlier reports, the studio had been in discussions with Xbox in an effort to avoid closure. However, a source reportedly told The Verge that Ninja Theory is now being shut down, with employees informed of the decision during a call on Monday. This shocked many people as the studio just announced Senua, the latest in the Hellblade IP.
The second studio reportedly affected is Double Fine, the developer behind award-winning games Psychonauts, Keeper, and Kiln. Unfortunately, that kind of success does not always fit into a strategy focused on blockbuster growth. Since Xbox CEO Asha Sharma is steering the company toward concentrating resources on its biggest franchises as part of an effort to “return to growth”, games like this, however great, do not necessarily support the new direction. In the end, awards do not immediately mean sales.
Then there is Arkane which was earlier named together with Compulsion Games by Insider Gaming’s Mike Straw. He shared that several higher-ups within the studio had expressed real concern about Arkane’s future. Like Ninja Theory who is in active development of Senua, Arkane is also in active development of Marvel’s Blade.
According to Jason Schreier of Bloomberg, several studios are in active talks with Xbox so the list could be longer. He also shared that these studios might have a chance to buy themselves back from Xbox and go independent. While there is a glimmer of hope in that possibility, the reality remains that whichever direction they take, there will be mass layoffs.
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Sending some gaming news your way from a surfing paradise island. Loves creating content, and researching informative facts and useless trivia. A novice in the gaming industry but a veteran in communications and publication.
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