Report: Multiple Xbox Studios In 'Active Negotiations' With Microsoft To Avoid Closure

purexbox.com Jun 16, 2026

Report: Multiple Xbox Studios In ‘Active Negotiations’ With Microsoft To Avoid Closure

Curated by Shubham · TechCapsules · Jun 16, 2026

AI-summarised brief · reviewed before publication

Microsoft is reportedly in active negotiations with at least three Xbox studios, including Compulsion Games, Double Fine, and Ninja Theory, over their futures. The studios may be at risk of closure, but they may also have the opportunity to buy themselves back from Microsoft and go independent. This could result in significant job losses. The situation is still developing, with some employees already given permission to look for work elsewhere. Decisions are expected to be finalized by the end of the month. Ninja Theory, the studio behind the Hellblade series, has been informed of its closure. Employees are hoping the studio will find a buyer.

💡 Why It Matters

· The potential closure of these studios threatens the livelihoods of hundreds of game developers.
· Microsoft's willingness to sell the studios back to their original owners could pave the way for independent game development.

Capsules Gaming

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