Report: Ninja Theory, Compulsion Games, Double Fine in Active Negotiations With Xbox to Avoid Closure
The Xbox news just keeps on rolling. This time around, it’s bad news, as several first-party studios are in danger of being shut down by Microsoft.
This report surfaces amid Xbox CEO Asha Sharma’s admission of a “reset” for the company, as she reveals that Microsoft has spent $20 billion on acquisitions, excluding the Activision-Blizzard buyout.
Not only that, but even Microsoft CEO Satya Nadella has admitted that they have to turn Xbox into a more suitable business, as he claims Xbox games are monetized more on YouTube than at Microsoft.
The studios said to be in danger of closing down include Compulsion Games (South of Midnight), Double Fine (Psychonauts), and Ninja Theory (Senua franchise).
Multiple Xbox Studios Are Now Planning to Spin Off to Avoid Closure
The report comes from Bloomberg’s ever-reliable Jason Schreier, who mentions that aside from the three studios mentioned above, there are “several other studios” across Microsoft’s portfolio that are at risk of being shut down.
The studios are said to have the opportunity to buy themselves back from Xbox and go independent, though this would likely result in many employees losing their jobs, according to people who asked not to be named because they were not authorized to speak to the press.
It’s also said that employees at several studios have been informed of the situation and have even been given permission to seek new work, though the status of these studios is still in flux as of press time.
Xbox has declined to comment on the matter as of press time.
These studio shutdowns and restructuring are to be expected given Sharma’s new approach in bringing the Xbox division into profitability, which also includes releasing more games as console exclusives. The CEO has not been coy in saying that once their business is in a healthier state, they aim to do more console exclusives, which means Gears of War: E-Day and Clockwork Revolution will be joined by other titles at some point.
Not only are Xbox studios in shambles right now, but even key personnel at the division are jumping ship amid the uncertainty. Today, we reported that the head of Xbox Game Studios and the Chief of Staff have both departed.
What’s odd here is Ninja Theory’s inclusion in the group, given Xbox just announced Senua at this month’s Xbox Games Showcase.
Expect more news to emerge from this development in the coming days. Let’s hope that whomever is affected gets to land on their feet soon.
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