It’s a scary time to be a game studio that is a part of the Xbox Games Studio family, as layoffs loom and rumors circulate as to who is on the chopping block. It’s no secret that Xbox is facing tough decisions moving forward in a bid to survive and flourish. From a change in leadership to restructuring, which involves both new staff and branding and services, there’s a lot in progress to save what apparently has been a sinking ship. Execs Asha Sharma and Matt Booty have been straightforward that Xbox “overextended” itself with investments, and would be reexamining them moving forward, but some of the studios said to be getting cut have also received praise recently, and one has a new title set to release soon. From Bloomberg to Insider Gaming and Kotaku (via VideoCardz and KitGuru), rumors are spreading about who in the Xbox family is getting let go.
First up is Ninja Theory, whose staff were notified yesterday that it would be closing, but is hoping to find another buyer. The studio, famed for its Hellblade games, has a side-project based on its main character, called Senua, which is set to launch soon.
Next up is Compulsion Games, which launched South of Midnight last year, and while that title received positive reviews, sales figures may not have reached favorable target levels. Meanwhile, Psychonauts developers Double Fine are rumored to be on a list as well. Arkane Lyon, who is reportedly working on Marvel’s Blade, has developed Dishonored 2 and Deathloop, and is potentially facing the reaper as well. As a reminder, Arkane Austin was closed a couple of years back. If true, the upcoming Marvel game could be a sink-or-swim moment for the studio.
With multiple sources claiming such similar outcomes, it does look as if Xbox is about to make some major changes soon, but one does have to wonder about the timing of it all with new projects on the horizon. Another rumor that circulated over the weekend is that Microsoft is considering spinning off Xbox, thus making it an independently fiscally responsible company. It’s been said that some studios will be offered the opportunity to buy out their contracts, but that has not been officially confirmed. So many rumors and so much to think about for anyone working at Xbox.