Compulsion Games, Ninja Theory & Others Might Be Getting Shut Down By Xbox

purexbox.com Jun 16, 2026

Compulsion Games, Ninja Theory & Others Might Be Getting Shut Down By Xbox

Curated by Shubham · TechCapsules · Jun 16, 2026

AI-summarised brief · reviewed before publication

Xbox is reportedly planning to shut down Compulsion Games, the developer behind We Happy Few and South of Midnight. The studio, which employs over 100 workers, has been in negotiations with Microsoft about its future. Other Xbox studios, including Double Fine, may also be affected. Ninja Theory, the developer of Hellblade, is reportedly set to be closed down by Xbox, but is hopeful of finding a buyer. The reasons behind the closures are unclear, but speculation suggests that the studios may not have performed as well as Xbox had hoped.

💡 Why It Matters

· The potential closure of Xbox studios could have a significant impact on the gaming industry, particularly in terms of creative talent and intellectual property.
· The loss of studios like Compulsion Games and Ninja Theory could lead to a shortage of innovative and critically acclaimed games in the future.

Capsules Gaming

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