I'm following a fast-moving rumour that, if true, could reshape parts of Microsoft's first-party lineup. Per Bloomberg, at least three Xbox-owned studios are reportedly in active negotiations with Microsoft about their futures — and the situation is still said to be "in flux". Take this with a pinch of salt, but the names being repeatedly raised are Compulsion Games, Double Fine and Ninja Theory.
What Was Reported
Per Bloomberg, multiple Xbox studios are allegedly engaged in talks with Microsoft to determine whether they will remain under the publisher’s umbrella. The outlet names Compulsion Games (already rumoured to be at risk), Double Fine (known for Psychonauts, Keeper, Kiln) and Ninja Theory (known for Hellblade) as being among those negotiating. The report also says several other Microsoft studios are "at risk of being shuttered".
Earlier in the day, it was rumoured that Arkane could be in trouble as well. Per The Verge, there is also a more specific claim that Ninja Theory is "set to be closed" — staffers were reportedly told on a call on Monday about the closure, and employees are allegedly hoping the studio will find a buyer.
Bloomberg's write-up reportedly notes that affected studios may have a window to buy themselves back from Microsoft and go independent — but that such an outcome could come with significant job losses. The situation is described as fluid, with some employees reportedly already given permission to look for work elsewhere. For what it's worth, any decisions are expected to be finalised by the end of the month, per the reporting.
The Source & Credibility
Who Is Named
- Compulsion Games
- Double Fine (titles cited: Psychonauts, Keeper, Kiln)
- Ninja Theory (title cited: Hellblade)
- Other studios allegedly "at risk", with Arkane mentioned in earlier rumour threads
How Reliable Are The Claims?
Per the material I'm looking at, the primary on-the-record reporting comes via Bloomberg, with The Verge providing an update claiming staff were told about a closure at Ninja Theory. These are established outlets, but the coverage itself stresses uncertainty: the situation is reportedly "in flux" and not final.
Treat the specifics as tentative. The idea that studios could negotiate to buy themselves back and become independent is presented as a possible outcome, not a confirmed path. Similarly, the more definite claim that Ninja Theory is "set to be closed" comes from The Verge reporting staff were informed on a call — an important detail, but one that still requires independent confirmation. In short: allegedly true, but take this with a pinch of salt.
What It Could Mean
If these reports are accurate, several outcomes are possible. One scenario — explicitly mentioned in the reporting — is that studios negotiate buyouts to spin back into independent companies. That option could preserve brands and some teams, but the reporting also warns it "could result in a lot of job losses." Another possible outcome is full closure by Microsoft, which
