{"id":1992512,"date":"2026-06-16T09:10:50","date_gmt":"2026-06-16T06:10:50","guid":{"rendered":"https:\/\/analyse.optim.biz\/?p=1992512"},"modified":"2026-06-16T09:10:50","modified_gmt":"2026-06-16T06:10:50","slug":"microsoft-reportedly-negotiating-closures-of-multiple-xbox-studios-including-psychonauts-double-fine-south-of-midnights-compulsion-and-hellblades-ninja-theory","status":"publish","type":"post","link":"https:\/\/analyse.optim.biz\/?p=1992512","title":{"rendered":"Microsoft reportedly negotiating closures of multiple Xbox studios, including Psychonauts&#8217; Double Fine, South of Midnight&#8217;s Compulsion and Hellblade&#8217;s Ninja Theory"},"content":{"rendered":"<article class=\"article \" data-ads=\"true\" data-article-type=\"news\" data-article-group=\"news\" data-paywalled=\"false\" data-premium=\"false\" data-sponsored=\"false\" data-type=\"article\">\n<header class=\"article_header\" data-component=\"article-header\">\n<div class=\"breadcrumbs\">\n<nav class=\"nav_breadcrumbs\" data-component=\"nav-breadcrumbs\" aria-label=\"Breadcrumb\">\n<ul class=\"nav-links\">\n<li>\n                <a href=\"https:\/\/www.eurogamer.net\/\" data-active=\"false\"><br \/>\n                      Home<br \/>\n                <\/a>\n            <\/li>\n<li>\n                <a href=\"https:\/\/www.eurogamer.net\/news\" data-active=\"false\"><br \/>\n                      News<br \/>\n                <\/a>\n            <\/li>\n<\/ul>\n<\/nav><\/div>\n<div class=\"headline_details\" id=\"main-content\">\n<h1 class=\"title\">Microsoft reportedly negotiating closures of multiple Xbox studios, including Psychonauts&#8217; Double Fine, South of Midnight&#8217;s Compulsion and Hellblade&#8217;s Ninja Theory<\/h1>\n<p class=\"strapline\">&#8220;Safe to say that the Xbox of July will look drastically different than the Xbox of June.&#8221;<\/p>\n<\/p><\/div>\n<div class=\"headline_asset\">\n<figure class=\"headline_image_wrapper\">\n<p>        <img fetchpriority=\"high\" decoding=\"async\" class=\"headline_image\" src=\"https:\/\/assetsio.gnwcdn.com\/south-of-midnight_zNXVgUt.jpg?width=570&amp;quality=85&amp;format=jpg&amp;dpr=3&amp;auto=webp\" alt=\"The South of Midnight main character Hazel, looking tearfully at the camera.\" loading=\"eager\" data-uri=\"south-of-midnight_zNXVgUt.jpg\" data-lightbox width=\"570\" height=\"321\"><figcaption>\n          <span class=\"attribution\">Image credit: <cite>Compulsion Games<\/cite><\/span><br \/>\n        <\/figcaption><\/figure>\n<\/p><\/div>\n<div class=\"metadata\">\n<div class=\"avatar\">\n<p>    <img loading=\"lazy\" decoding=\"async\" alt=\"Victoria Phillips Kennedy avatar\" src=\"https:\/\/assetsio.gnwcdn.com\/1644925423.jpg?width=2048&amp;height=2048&amp;fit=bounds&amp;quality=85&amp;format=jpg&amp;auto=webp\" style=\"aspect-ratio: 1\" width=\"180\" height=\"179\"><\/p>\n<p>  <img alt=\"Victoria Phillips Kennedy avatar\" data-autosize=\"crop_lossy\" data-uri=\"1644925423.jpg\" loading=\"lazy\" style=\"aspect-ratio: 1\" width=\"180\" height=\"179\">\n<\/div>\n<div class=\"text\">\n<div class=\"byline\">\n                  <span class=\"article_type\" data-slug=\"news\"><br \/>\n                    News<br \/>\n                  <\/span><\/p>\n<p><span class=\"by\">by<\/span> <span class=\"author\"><a href=\"https:\/\/www.eurogamer.net\/authors\/victoria-kennedy\">Victoria Phillips Kennedy<\/a><\/span>                    <span class=\"job_title\"><br \/>\n                      News Reporter<br \/>\n                    <\/span>\n            <\/div>\n<div class=\"published_at\">\nPublished on <time datetime=\"2026-06-16T09:10:50+00:00\">June 16, 2026<\/time>              <\/div>\n<\/p><\/div>\n<div class=\"mypop-header-wrapper\">\n<p><button class=\"mypop-button button wide\" data-state=\"follow\" data-type=\"tag\" data-uuid=\"74458eb5-5606-453b-85e7-44ee14afddeb\" data-name=\"Keeper (2025)\" data-follow-text=\"Follow Keeper (2025)\" data-unfollow-text=\"Following Keeper (2025)\" data-aria-follow-text=\"Follow Keeper (2025)\" data-aria-unfollow-text=\"Following Keeper (2025)\" data-popup=\"true\" data-force-login=\"true\" aria-label=\"Follow Keeper (2025)\" title=\"Follow Keeper (2025)\"><br \/>\n  Follow Keeper (2025)<br \/>\n<\/button>          <\/div>\n<\/p><\/div>\n<\/header>\n<div class=\"article_body\" data-component=\"article-content\">\n<div class=\"article_body_content article-styling\">\n<p>Multiple Microsoft-owned Xbox game studios are reportedly in danger of being shut down.<\/p>\n<p>According to <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2026-06-15\/studios-in-microsoft-s-xbox-division-brace-for-closures\">Bloomberg<\/a>, <a href=\"https:\/\/www.eurogamer.net\/games\/south-of-midnight\">South of Midnight<\/a> developer Compulsion Games, <a href=\"https:\/\/www.eurogamer.net\/games\/psychonauts\">Psychonauts<\/a> and Keeper developer Double Fine , and <a href=\"https:\/\/www.eurogamer.net\/games\/hellblade\">Hellblade<\/a> developer Ninja Theory have each started negotiations with Microsoft to buy back their independence from Xbox Studios, in a bid to avert full studio closures. Reports of Compulsion&#8217;s potential closure were also corroborated by <a href=\"https:\/\/kotaku.com\/xbox-shuttering-south-of-midnight-peabody-award-compulsion-games-2000706065\">Kotaku<\/a>.<\/p>\n<figure>\n<div class=\"video_wrapper youtube\">\n<a aria-label=\"Senua - Official Reveal Trailer | Xbox Games Showcase 2026\" class=\"video-facade full-size\" data-platform=\"youtube\" href=\"https:\/\/www.youtube.com\/embed\/xJbUOoqqhc0?autoplay=1\" title=\"Click to play video from YouTube\"><br \/>\n<img decoding=\"async\" alt=\"Cover image for YouTube video\" class=\"video-facade__image\" loading=\"lazy\" src=\"https:\/\/i.ytimg.com\/vi\/xJbUOoqqhc0\/hqdefault.jpg\"><span class=\"video-facade__title\">Senua &#8211; Official Reveal Trailer | Xbox Games Showcase 2026<\/span><\/p>\n<p><\/a>\n<\/div><figcaption>Senua &#8211; Official Reveal Trailer. <a class=\"video\" href=\"https:\/\/www.youtube.com\/watch?v=xJbUOoqqhc0\" rel=\"noopener\" target=\"_blank\">Watch on YouTube<\/a><\/figcaption><\/figure>\n<p>Other threatened Xbox studios were not named in Bloomberg&#8217;s report, but apparently &#8220;several&#8221; others are also at risk of being closed. While nothing has been confirmed, <a href=\"https:\/\/bsky.app\/profile\/did:plc:2sbznsgllwokwgg3kud5gfgw\/post\/3modp44e3l223?ref_src=embed\">Insider Gaming&#8217;s Mike Straw<\/a> claims <a href=\"https:\/\/www.eurogamer.net\/arkane-lyons-blade-game-might-be-dead-following-xbox-games-showcase-no-show\">staff at Blade studio Arkane are &#8220;scared&#8221;<\/a>.<\/p>\n<p>In a separate report by <a href=\"https:\/\/www.theverge.com\/games\/950204\/xbox-ninja-theory-shutdown-hellblade-senua\">The Verge<\/a>, sources claimed that staff at Ninja Theory were informed of the impending closure on Monday, though  the team is hopeful the studio will find a buyer. <a href=\"https:\/\/www.eurogamer.net\/hellblade-3-senua-announcement-ninja-theory\">Ninja Theory only announced its next game &#8211; Senua &#8211; at the Xbox Games Showcase earlier this month<\/a>. Senua is due out at some point next year, on PlayStation 5, Steam, Xbox Series S\/X, and Game Pass.<\/p>\n<p>Writing on <a href=\"https:\/\/bsky.app\/profile\/jasonschreier.bsky.social\/post\/3moe5263bjc2p\">Bluesky<\/a>, Bloomberg&#8217;s Jason Schrier said: &#8220;Safe to say that the Xbox of July will look drastically different than the Xbox of June.&#8221;<\/p>\n<div class=\"twitter_wrapper\">\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"art\">\ud83d\ude05<\/p>\n<p>\u2014 Double Fine (@DoubleFine) <a href=\"https:\/\/x.com\/DoubleFine\/status\/2066719196944478636?ref_src=twsrc%5Etfw\">June 16, 2026<\/a><\/p><\/blockquote>\n<p><span class=\"embed_placeholder\" data-type=\"targeting\" style=\"display: none\"><br \/>\n<span class=\"message\">To see this content please enable targeting cookies.<\/span><br \/>\n<button class=\"optanon-show-settings link\"><br \/>\nManage cookie settings<\/button><\/span>\n<\/div>\n<p>Today&#8217;s news follows reports from last week that newly-appointed Xbox CEO Asha Sharma was planning a business &#8220;reset&#8221; for the brand, which would include <a href=\"https:\/\/www.eurogamer.net\/xbox-layoffs-business-reset\">slashing budgets and a &#8220;significant&#8221; number of staff layoffs<\/a>. Meanwhile, just yesterday it was announced that <a href=\"https:\/\/www.eurogamer.net\/xbox-game-studios-craig-duncan-leaves-company\">Craig Duncan had stepped down from his role as head of Xbox Game Studios<\/a> after less than two years.<\/p>\n<p><span class=\"injection_placeholder\" data-position=\"1\"><\/span><\/p>\n<p>Other changes at Xbox since Sharma took over at Xbox include the company refocusing on  console exclusives, with both <a href=\"https:\/\/www.eurogamer.net\/xboxs-gears-of-war-e-day-and-clockwork-revolution-are-not-timed-exclusives-as-playstation-5-misses-out-on-upcoming-releases\">Gears of War: E-Day and Clockwork Revolution skipping PlayStation 5<\/a>. Earlier this month, <a href=\"https:\/\/www.eurogamer.net\/xbox-console-exclusive-strategy-clockwork-revolution-gears-of-war-e-day\">the company&#8217;s chief content officer Matt Booty said future console exclusives will be determined on a case-by-case basis<\/a>, though Xbox&#8217;s big multiplayer and live service games will continue to be multiplatform.<\/p>\n<p>Eurogamer has asked Xbox for comment on today&#8217;s reported studio closures, and will update when we hear more.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<div class=\"preferred-source\" data-component=\"preferred-source\">\nLove Eurogamer.net? Make us a <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.google.com\/preferences\/source?q=https:\/\/www.eurogamer.net\">Preferred Source on Google<\/a> and catch more of our coverage in your feeds.  <\/div>\n<\/article>\n<div class=\"article_body\" data-component=\"article-content\">\n<div class=\"article_body_content article-styling\">\n<p>Multiple Microsoft-owned Xbox game studios are reportedly in danger of being shut down.<\/p>\n<p>According to <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2026-06-15\/studios-in-microsoft-s-xbox-division-brace-for-closures\">Bloomberg<\/a>, <a href=\"https:\/\/www.eurogamer.net\/games\/south-of-midnight\">South of Midnight<\/a> developer Compulsion Games, <a href=\"https:\/\/www.eurogamer.net\/games\/psychonauts\">Psychonauts<\/a> and Keeper developer Double Fine , and <a href=\"https:\/\/www.eurogamer.net\/games\/hellblade\">Hellblade<\/a> developer Ninja Theory have each started negotiations with Microsoft to buy back their independence from Xbox Studios, in a bid to avert full studio closures. Reports of Compulsion&#8217;s potential closure were also corroborated by <a href=\"https:\/\/kotaku.com\/xbox-shuttering-south-of-midnight-peabody-award-compulsion-games-2000706065\">Kotaku<\/a>.<\/p>\n<figure>\n<div class=\"video_wrapper youtube\">\n<a aria-label=\"Senua - Official Reveal Trailer | Xbox Games Showcase 2026\" class=\"video-facade full-size\" data-platform=\"youtube\" href=\"https:\/\/www.youtube.com\/embed\/xJbUOoqqhc0?autoplay=1\" title=\"Click to play video from YouTube\"><br \/>\n<img decoding=\"async\" alt=\"Cover image for YouTube video\" class=\"video-facade__image\" loading=\"lazy\" src=\"https:\/\/i.ytimg.com\/vi\/xJbUOoqqhc0\/hqdefault.jpg\"><span class=\"video-facade__title\">Senua &#8211; Official Reveal Trailer | Xbox Games Showcase 2026<\/span><\/p>\n<p><\/a>\n<\/div><figcaption>Senua &#8211; Official Reveal Trailer. <a class=\"video\" href=\"https:\/\/www.youtube.com\/watch?v=xJbUOoqqhc0\" rel=\"noopener\" target=\"_blank\">Watch on YouTube<\/a><\/figcaption><\/figure>\n<p>Other threatened Xbox studios were not named in Bloomberg&#8217;s report, but apparently &#8220;several&#8221; others are also at risk of being closed. While nothing has been confirmed, <a href=\"https:\/\/bsky.app\/profile\/did:plc:2sbznsgllwokwgg3kud5gfgw\/post\/3modp44e3l223?ref_src=embed\">Insider Gaming&#8217;s Mike Straw<\/a> claims <a href=\"https:\/\/www.eurogamer.net\/arkane-lyons-blade-game-might-be-dead-following-xbox-games-showcase-no-show\">staff at Blade studio Arkane are &#8220;scared&#8221;<\/a>.<\/p>\n<p>In a separate report by <a href=\"https:\/\/www.theverge.com\/games\/950204\/xbox-ninja-theory-shutdown-hellblade-senua\">The Verge<\/a>, sources claimed that staff at Ninja Theory were informed of the impending closure on Monday, though  the team is hopeful the studio will find a buyer. <a href=\"https:\/\/www.eurogamer.net\/hellblade-3-senua-announcement-ninja-theory\">Ninja Theory only announced its next game &#8211; Senua &#8211; at the Xbox Games Showcase earlier this month<\/a>. Senua is due out at some point next year, on PlayStation 5, Steam, Xbox Series S\/X, and Game Pass.<\/p>\n<p>Writing on <a href=\"https:\/\/bsky.app\/profile\/jasonschreier.bsky.social\/post\/3moe5263bjc2p\">Bluesky<\/a>, Bloomberg&#8217;s Jason Schrier said: &#8220;Safe to say that the Xbox of July will look drastically different than the Xbox of June.&#8221;<\/p>\n<div class=\"twitter_wrapper\">\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"art\">\ud83d\ude05<\/p>\n<p>\u2014 Double Fine (@DoubleFine) <a href=\"https:\/\/x.com\/DoubleFine\/status\/2066719196944478636?ref_src=twsrc%5Etfw\">June 16, 2026<\/a><\/p><\/blockquote>\n<p><span class=\"embed_placeholder\" data-type=\"targeting\" style=\"display: none\"><br \/>\n<span class=\"message\">To see this content please enable targeting cookies.<\/span><br \/>\n<button class=\"optanon-show-settings link\"><br \/>\nManage cookie settings<\/button><\/span>\n<\/div>\n<p>Today&#8217;s news follows reports from last week that newly-appointed Xbox CEO Asha Sharma was planning a business &#8220;reset&#8221; for the brand, which would include <a href=\"https:\/\/www.eurogamer.net\/xbox-layoffs-business-reset\">slashing budgets and a &#8220;significant&#8221; number of staff layoffs<\/a>. Meanwhile, just yesterday it was announced that <a href=\"https:\/\/www.eurogamer.net\/xbox-game-studios-craig-duncan-leaves-company\">Craig Duncan had stepped down from his role as head of Xbox Game Studios<\/a> after less than two years.<\/p>\n<p><span class=\"injection_placeholder\" data-position=\"1\"><\/span><\/p>\n<p>Other changes at Xbox since Sharma took over at Xbox include the company refocusing on  console exclusives, with both <a href=\"https:\/\/www.eurogamer.net\/xboxs-gears-of-war-e-day-and-clockwork-revolution-are-not-timed-exclusives-as-playstation-5-misses-out-on-upcoming-releases\">Gears of War: E-Day and Clockwork Revolution skipping PlayStation 5<\/a>. Earlier this month, <a href=\"https:\/\/www.eurogamer.net\/xbox-console-exclusive-strategy-clockwork-revolution-gears-of-war-e-day\">the company&#8217;s chief content officer Matt Booty said future console exclusives will be determined on a case-by-case basis<\/a>, though Xbox&#8217;s big multiplayer and live service games will continue to be multiplatform.<\/p>\n<p>Eurogamer has asked Xbox for comment on today&#8217;s reported studio closures, and will update when we hear more.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Home News Microsoft reportedly negotiating closures of multiple Xbox studios, including Psychonauts&#8217; Double Fine, South of Midnight&#8217;s Compulsion and Hellblade&#8217;s Ninja Theory &#8220;Safe to say that the Xbox of July will look drastically different than the Xbox of June.&#8221; Image credit: Compulsion Games News by Victoria Phillips Kennedy News Reporter Published on June 16, 2026 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[226,253],"class_list":["post-1992512","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-crawlmanager","tag-eurogamer-net"],"_links":{"self":[{"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/posts\/1992512","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1992512"}],"version-history":[{"count":0,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/posts\/1992512\/revisions"}],"wp:attachment":[{"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1992512"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1992512"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1992512"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}