Xbox's Shocking Studio Shutdowns: What It Means for Gamers and the Industry

Redmond, Monday, 15 June 2026.
Microsoft’s Xbox is in talks to close three beloved studios—Ninja Theory, Double Fine, and Compulsion Games—threatening iconic franchises like Hellblade II and Psychonauts 2. With $20 billion spent on acquisitions in five years and revenue declining, Xbox’s restructuring could reshape its future and leave hundreds of developers jobless. The move follows its $69 billion Activision Blizzard deal, raising questions about its strategy against Sony and Nintendo.