Xbox Studios Reportedly Negotiating Buyouts as Closure Fears Grow

Several Xbox-owned studios, including Compulsion Games, Double Fine, Ninja Theory, and others, are reportedly trying to negotiate buyouts as Microsoft prepares another major round of cuts across its gaming business. The situation has raised fresh concern around the future of Xbox Game Studios, especially as more teams now appear to be at risk of closure.

Bloomberg reports that Double Fine and Compulsion are in active talks to spin off from Xbox and continue as independent studios, similar to how Toys for Bob separated from Activision instead of being shut down.

The Verge also claims Ninja Theory faces a more difficult path, with shutdown reportedly on the table and acquisition by another studio described as the best hope for its future.

This comes shortly after Ninja Theory revealed Senua, the next entry in the Hellblade series, which now faces an uncertain future if the studio cannot survive the wider restructuring.

The reported layoffs follow what Xbox leadership has described as a broader “reset” inside the gaming division, with leadership changes already taking place across Xbox Game Studios.

If these buyout talks fail, Microsoft’s next wave of gaming cuts could become one of the most damaging rounds yet for Xbox’s first-party teams.