- Primary Subject: Xbox Studio Closures
- Key Update: Microsoft is reportedly considering shutting down several Xbox studios, including Ninja Theory and Double Fine, as part of a major restructuring.
- Status: Rumored
- Last Verified: 2026-06-15
- Quick Answer: Potential closure of several Xbox game development studios is on the horizon, including Ninja Theory and Double Fine, due to a company-wide restructuring.
Microsoft could be shutting down a few studios as the controversial Xbox Reset measure takes flight. Among these, Ninja Theory and Double Fine stand out as two of the most important developers that could be axed.
Bloomberg reports that Ninja Theory, the makers of the Hellblade series, Double Fine, known for cult classic IP Psychonauts, and Compulsion Games, of South of Midnight fame, are all being considered as Xbox's latest studios to be shut down.
Employees for these studios and a few undisclosed ones were told on June 15 that they are free to pursue other work opportunities amid uncertainty about their current roles. Jason Schrier also reports that studios might be looking at buyers or, potentially, going full independent by buying themselves out of Xbox. In any case, it's all but a certainty that these developers will no longer be a part of Microsoft's
As mentioned, all this comes off the back of a complete Xbox restructure plan. New CEO Asha Sharma stated in an internal letter that was later made public that some harsh decisions would have to be made.
At the moment, neither Xbox nor any of the alleged affected studios has issued a public statement regarding their current situation.
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