Microsoft’s Xbox division could be facing another wave of internal changes, with reports suggesting that upcoming layoffs may also lead to potential studio shut down and restructuring across Xbox Game Studios.
According to reports from Insider Gaming’s Mike Straw, Arkane Lyon and Compulsion Games may be among the studios affected by Microsoft’s latest plans. The news has raised concerns among developers, with sources reportedly claiming that employees at some studios are uncertain about their future.
Arkane Lyon is known for creating games such as Deathloop and the Dishonored series, while the studio is currently working on Marvel’s Blade. Compulsion Games previously developed Contrast and We Happy Few, with its latest project, South of Midnight, recently released.
The reported situation could also involve Ninja Theory and Double Fine Productions. Bloomberg’s Jason Schreier has reportedly backed up parts of the claims, stating that Microsoft has been in discussions with several studios about possible separation agreements.
Reports suggest these discussions could include different outcomes, such as studios becoming independent or being acquired by other companies. However, even if these deals happen, employees could still face job losses as part of the process.
The possible changes come after several rounds of layoffs across Microsoft’s gaming division. Since completing the acquisition of Activision Blizzard, Microsoft has continued adjusting its gaming operations, leading to cuts across different teams.
Key points from the reports include:
- Arkane Lyon and Compulsion Games may be facing possible closure discussions.
- Ninja Theory and Double Fine Productions are reportedly involved in negotiations with Microsoft.
- Some studios may attempt to separate from Xbox and continue independently.
- Potential buyouts could still result in employee layoffs.
- Some employees have reportedly been advised to look for new opportunities due to uncertainty.
- Microsoft has not officially confirmed any studio closures at this time.
The situation has created concerns among Xbox developers, especially because some of the affected studios have released well-known titles and have ongoing projects. Marvel’s Blade from Arkane Lyon remains one of Xbox’s upcoming releases, while Compulsion Games recently launched South of Midnight.
For now, Microsoft has not shared an official statement regarding the reported closures or restructuring plans. More information is expected to emerge as Xbox continues reviewing its gaming strategy and internal operations.
