Hours later it was reported that Microsoft could soon close Compulsion Games, developer of Xbox South of MidnightA new report has come to light suggesting that several other Xbox Game Studios developers may also be in the crosshairs.
According Bloomberg and sources familiar with Microsoft’s plans, both Double Fine Productions and Ninja Theory are, like Compulsion Games, “at risk of being shut down” and are in “active negotiations to spin off” Xbox. Reportedly, “several other studios” are also in this situation.
Double Fine is best known for Psychonauts, Keeper, and its new ceramic-based fighting game Kiln, while Ninja Theory is responsible for the dark fantasy action-adventure series. hell blade; just a few days ago, the latter presented a new Hellblade game called Senua during the Xbox game showcase.
According to a source who spoke with The edgeNinja Theory’s closure is underway, although its staff “hopes the studio finds a buyer.”
Additionally, studios that Microsoft is considering closing may have the opportunity to buy back from Xbox and become independent developers, Bloomberg says, although many employees will eventually lose their jobs no matter what. Workers have been informed and given permission to pursue new opportunities while negotiations continue.
It is worth noting that earlier today, it was reported that both the head of Xbox Game Studios, Craig Duncan, and his chief of staff, Louise O’Connor, will leave Microsoft soon or have already done so.
These upcoming closures and cuts are reportedly part of Microsoft’s upcoming 100-day “Xbox reset” a major reorganization of Xbox as a business led by its new CEO asha sharma. Last week, Bloomberg reported that this change would be accompanied by significant layoffs in July..
It should be noted that this news also arrives a few days later It was separately reported that a complete restructuring of Xbox is “on the table.” Microsoft is apparently considering making Xbox a subsidiary of the company while also focusing on new entries in its biggest franchises like Halo, radioactive dustand The ancient scrolls.
All signs point to Sharma and Xbox as a whole making the success of their biggest and most profitable franchises their top priority after its constant business declinewhich would explain why these studios specifically are at risk of being separated from Microsoft; The South of Midnight, Keeper, and Hellblade titles are all critically acclaimed and highly rated, but they have not been the most commercially successful.
In the end, regardless of Microsoft and Xbox reasoning For these potential closures, it is devastating to know that even more The layoffs are likely to add to the thousands upon thousands that have already plagued the industry in recent years. Last year, Xbox closed The Initiative and Everwild, ZeniMax’s unannounced new MMO, and Perfect Dark canceled.
Whether Compulsion Games, Double Fine, Ninja Theory, and others close or become independent, I hope that the process goes as smoothly as possible and that all affected developers can find new positions elsewhere as soon as possible.
Does it bother you that Microsoft and Xbox are closing these studios soon? How do you feel about the whole situation? Let me know in the comments.
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