Xbox might close or sell these 3 game studios
What's the story
Microsoft is planning to shut down or sell at least three of its Xbox game development studios: Ninja Theory, Double Fine and Compulsion Games. The news was reported by The Verge and Bloomberg on Monday. Ninja Theory employees were informed about the studio's closure but are actively looking for a buyer to keep their operations running.
Negotiations
Double Fine and Compulsion Games are negotiating potential buyouts
Double Fine, the studio behind the popular Psychonauts games, is also in talks to buy itself back from Xbox. The studio was founded by Tim Schafer and his friends in 2000. Compulsion Games, known for its stylish titles like Contrast and We Happy Few, is in a similar situation. Both studios are trying to avoid closure by negotiating potential buyouts with Microsoft.
Uncertainty
Other studios under the threat of closure
Bloomberg reported that several other studios under the Xbox Game Studios banner are negotiating for their futures and could face closure. The list of studios includes Arkane, Bethesda, Halo Studios, id Software, Obsidian, Playground Games, ZeniMax and Activision Blizzard King.
Acquisition history
Microsoft's acquisition spree since 2018
Microsoft's aggressive acquisition strategy for game studios began in 2018 with the purchases of Undead Labs, Playground Games, Ninja Theory and Compulsion Games. The trend continued in 2020 and 2021 when Xbox acquired eight more studios under ZeniMax Media, including Arkane, Bethesda and id Software. In late 2023, Microsoft completed its $69 billion purchase of Activision Blizzard, the largest acquisition in video game history, after a protracted regulatory battle.