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Xbox in talks to spin off Double Fine, Ninja Theory and Compulsion

gamingJun 15, 20261528,402

Microsoft is negotiating buyouts that would let Compulsion Games, Double Fine, and Ninja Theory spin off as independent studios to avoid closure amid a wider Xbox restructuring. Microsoft plans to shut down South of Midnight developer Compulsion Games, and heavy job losses are expected even if buyouts succeed. Double Fine, Ninja Theory, and Compulsion developed Psychonauts, Hellblade, and We Happy Few respectively, and losing or fragmenting those teams would shrink Xbox’s creative lineup and shift key IP and talent back into the independent market.

Jason Schreier
@jasonschreier.bsky.social

BREAKING: Several Xbox studios, including Compulsion, Ninja Theory and Double Fine, are negotiating with Xbox as they try to avoid closure. Some or all could spin off. Lots still in flux as many studios remain unsure about what's happening. Here's the latest: www.bloomberg.com/news/article...

28095h ago
Jason Schreier872

These are not the only three Xbox studios at risk of closure, but there's still a lot of uncertainty surrounding the company's plans. More to come in the next few days and weeks. Safe to say that the Xbox of July will look drastically different than the Xbox of June.

Brett204

Motherfuckers are really trying to close Ninja Theory after JUST ANNOUNCING a new Hellblade game? Burn Microdick go the ground, man.

Miki175

Ninja Theory? 2 weeks after revealing their new game? Don't they also have the most advanced motion capture studio in England?

Xavier Perez170

Shutting down Double Fine feels unconscionable. Hopefully they can find a solution.

Brandon Makar148

Fucking Sony and Xbox doing all these acquisitions just to close the studios down.

Philip Flood135

Jason Schreier showing up on my feed like the grim reaper meme every time

Alex Miles66

All signs of a good business, I'm sure...

Socky Noob44

There will be riots if Double Fine shuts down

UnarmedGorilla 🇨🇦35

Wtf is going on at MSFT and XBOX??? They just come off a fantastic showcase, build up all this excitement and goodwill with the community, then a week later decide to just burn it all down! Like man, quit stepping on rakes after every single positive announcement.

Der Motzmichel auf Bluesky in der EU!!! 🇪🇺🇺🇦🇮🇱❤️🕊️☮️🏳️‍🌈🍍🤪🚀🖖🏽✌🏽🖕🏼🤡🙈🙉🙊👉🏽👌🏽🌮🥸🫣💩🌈23

Now is the second best time to quit XBOX #gamepass ..! I quit when they raised the prices. They are still not back to normal. Microsoft is killing Xbox! … #gaming

NoonDragoon23

But don't worry guys, Gears is exclusive now so Xbox is saved.

Jesse // BABA16

Double Fine fight!! you must live!!!

Matheus Castro16

The "glass half full" part of me is finding solace in the fact that, at the very least, they're going for the negotiation route instead of gutting them all like poor Tango. But the "glass half empty" part of me is afraid that one of these studios might very well be... id software.

Víctor Manuel14

why couldn't just free the studios??? in this spiral of layoffs, couldn't just free the studio and them thrive alone? the alternative is closing it.... oh, yeah, the capitalism and gameplay oligopoly, yeah, it was that

Forever Woke13

I hate Microsoft so much. I wish they never jumped in the game industry. Worthless company

GrumpHope13

Ninja Theory too? Damn. Sad times for gamedev. So this is this "reset" that Sharma was talking about?

Violet12

Xbox is so cooked it's not even funny

MGoCoder12

This is one of the problems with Game Pass. Compulsion's "South of Midnight" generated tons of Game Pass downloads but very few sales. So how valuable was it? Super hard to quantify.

Stefan Gagne11

If Double Fine can go indie again and stabilize, I'm all for it. Get the hell off the Titanic before it sinks. It beats MS dismantling the studio for parts and keeping everything. But being an auteur studio in San Francisco is still a dangerous combo.

TheMrX9

imagine spending billions buying them just to shut them all down, what a clown fest the current CEO is. Worst CEO ever.

Burgerpocalypse9

dont worry i kept my burning embers of hatred towards microsoft throughout the previous months of them pretending to turn a new leaf

Franklin Von Wolfgang Dracula8

everything’s fine guys. Xbox is so back!

Andrew Oliveira5

Just as Xbox fans were given hope about the course being corrected. They won't be fooled again.

avijeyy.bsky.social5

I hope they let them be independent. Shutting down those studios would be super dumb. Ninja theory doesn't make sense to me because they just announced a game that comes next year but idk

Jet Set Alejandro Future5

I kept bringing up Double Fine in these conversations. Not out of hope or anything remotely close to it. More so despair. Psychonauts was my favorite game growing up. I looked forward to it for months and loved/love every moment of it. This sucks.

Yo I'm Moon (Brendan)🌙5

What the fuck?! I genuinely hate that game companies are publicly traded. I hate the corporate greed. A few billion in profit isn't enough to keep people employed. I fucking hate it ALL.

Funtownarcade5

I thought eplacing millionaire Phil Spencer with a millionaire who has never played games would fix all their problems for sure.

MC Leon4

How many studios could remain open if Sharma just didn't get paid? Why do these executives get millions just to fail and fuck over hundreds to thousands of people's lives and throw out good talent and art to make a line go up this quarter or fiscal year?

BernyMoon4

Please dont’t cancel OD 🤞🏻

Willa4

This is what MS does, they buy up companies and then close them. Its insane and I don't know why people continue to sell to them. They have been doing this for literal years while XBOX flounders in the back of the console pack. Zero vision, zero creativity at the top tiers of MS.

Sweet Plasmids (Simon) 🎮4

Didn’t they JUST announce a new Senua game. What on earth is going on over there

Danny, Squaresoft's Official FFVIII Shill4

I didnt expect Xbox to last forever but man dying on the hill made of copilots sloppa wasnt one i think people saw coming back in the xbone days.

EliotBallade4

Just spin-off the whole brand and make it a complete third-party publisher at this point.

Tom Clancy's Project DIVA F 2nd4

... Didn't they JUST annkuce a new Ninja Theory game???

Orfez4

You people understand that without MS, these studios would have been dead a long time ago, right? In the last 8 years, they released: Compulsion — We Happy Few, South of Midnight Double Fine — RAD, Psych 2, Keeper, Kiln Ninja Theory — Hellblade VR, Bleeding Edge, Hellblade II

mario yuwono4

Well this fucking sucks. And a reminder that corporations are not your friend, no matter how much you like what they make

Matthias Dammes4

How fast things change. One week ago Ninja Theory was one of the studios that presented a new game at the Xbox showcase; now they are one of the studios at risk of closure?

MaxRoss4

Some body tell Tim Schaffer that the target audience for their games is on switch, not Xbox...

PigeonFish3

Double Fine made Psychonauts 2, my personal favorite game on the Xbox Series. I really hope they don't get tanked. Xbox's new CEO was just starting to get me interested again. If she does this, I'm done with them.

Joey Spiotto3

Thinking of @timoflegend.bsky.social and the team today. If anyone should just be left alone to make great work, it would be these folks.

KevandreCactus🌵3

Double Fine are you fucking kidding me Absolutely fucking not

Jakejames Lugo2

Not a great look at all... A big shame seeing this happen...

Scoops2

MS: Hey, Ninja Theory we just greenlit your latest game! Also, fuck you, your fired.

Brandon2

oh cool just a few of my favorite studios being shut down by the company whose console i purchased over the competition. surely that will ensure i stay in the xbox ecosystem

freddywap.bsky.social2

This is gonna get so messy. I get wanting to debloat. Especially after what felt like more than a decade of buyout after buyout. But man trimming the fat is gonna attract so much bad pr. Especially if they touch double fine.

Alan B2

Keep pissing billions away on 'AI' that nobody asked for or wants though.

FKFTSH2

Hopefully they can become independent. Reminder that Microsoft is still subject to a BDS boycott due to complicity in the genocide in Palestine.

fan_of_gaming2

Why announce Senua at their Showcase if they were just going to close Ninja Theory...

arankays2

we need to open source the greatest devil may cry game ever made before ninja theory closes

alvarobnu.bsky.social2

@sushi.jogabilida.de @phluttilippe.bsky.social @brunofreex.bsky.social @zitosilva.bsky.social @lucaszavadil.bsky.social até estúdio com jogo anunciado já está com a faca no pescoço

Escarietson2

Another Video Game Crash is coming in where Nintendo will survive while everyone else gets liquidated...!

theovy.bsky.social2

If Double Fine is dissolved, we riot

Midnight Oil2

Feels like it's going to hit like a shotgun when they also close or sell Arkane, Machine and a couple Cod support studios.

LeonIncognito2

DF is definitely in trouble

Whitney S Misch II2

thank god they bought up half the industry so they can now just lay them all off!

Sleepy Gamer2

Been expecting stuff like this since the Activision acquisition, but the timing on this, after a pretty good showcase, is bonkers.

Ash2

This generation has been so depressing

Corey “Big Slice” Strobbe2

Who the hell is left after that?

Dan Marshall
@danthat.bsky.social

Imagine owning Double Fine and even *considering* closing it. The history of Double Fine is the history of the games industry itself. This is a crime.

11345h ago
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