Xbox studios Compulsion Games, Double Fine, and Ninja Theory are at risk of being shuttered. However, they have the opportunity to buy themselves back from Microsoft and go independent. This comes as part of expected widespread cuts at Microsoft's gaming division, which were foreshadowed by comments from CEO Satya Nadella and Xbox boss Asha Sharma.
The potential studio closures or sales follow a decline in Xbox's annual revenue, with hardware costs increasing four times. Xbox's studio system is also considered overextended. The news comes a week after Xbox's big Games Showcase, where it shared updates on its biggest upcoming titles.
The fate of these studios remains uncertain, with employees informed of the situation and given permission to seek new work. The situation is still in flux, and it is unclear what the future holds for these award-winning studios.
