Xbox are reportedly closing or spinning off Psychonauts developers Double Fine, Hellblade studio Ninja Theory, and South of Midnight creators Compulsion Games, as Microsoft commence efforts to yet again “reset” their billion dollar gaming business after already laying off thousands of staff, cancelling games, and closing several studios over the past couple of years.
All three studios are apparently now haggling for their continued existence, as the end of Microsoft’s financial year looms, with many other Xbox teams said to be affected, and certain employees quietly encouraged to start seeking work elsewhere.
The report comes from Bloomberg, who cite anonymous staff at several studios. The Verge (paywall) also have an article in which they claim that Ninja Theory are in the process of trying to find a buyer, after being informed that they will be closed on Monday. Ninja Theory have literally just announced a new Senua game. Like, days ago.
Honestly, they need to do this. It can’t be possible to manage that many studios from the top of the Xbox organization. And, without market pressure as a clear feedback mechanism, it’s got to be difficult for the managers of the studios too.
The original sin here was buying so many and trying to become some game-production monopoly. The whole plan was crazy.
Hopefully this is good for the industry long-term. I’d love to see a bunch of independent studios pop up run by the people Microsoft temporarily ingested.
To be clear, this is terrible for the people involved, and it is all Microsoft’s fault (or, at least, Phil Spencer era Xbox’s fault - never understood why he was so respected inside or outside of Microsoft when he kept making one surely-obviously-bad decision after another). But it was surely inevitable.