Double Fine, Ninja Theory, and other Xbox studios could close

**TL;DR:** Double Fine, Ninja Theory, and other Xbox studios could close

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Bloomberg reports that Compulsion Games isn't the only Microsoft studio fighting to stay open during the great "Xbox reset" announced last week by new Xbox CEO Asha Sharma. Double Fine, Ninja Theory, and "several other studios" are at risk of closure, reports the publication, which cited undisclosed sources who are familiar with Microsoft's plans. According to The Verge , Ninja Theory will close unless it finds a buyer, despite just having announced a new Hellblade game at the recent Xbox showcase.

Double Fine is "in active negotiations to spin off," Bloomberg says, but job losses are expected even for studios that manage to buy their independence. Double Fine was founded 26 years ago by former LucasArts developer Tim Schafer, and is best known for Brütal Legend, crowdfunded adventure game Broken Age, and the Psychonauts series, as well as candid documentaries about the gamemaking process. The studio recently released Kiln, a multiplayer party game, and Keeper, a puzzle adventure game about a sentient lighthouse.

Microsoft acquired Double Fine in 2019 under the direction of former Xbox CEO Phil Spencer, who oversaw a spree of studio purchases, including the landmark Bethesda and Ac

Source: PC Gamer

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Last updated: June 16, 2026.

Additional context: early-cycle stories often look bigger in headlines than in day-to-day impact. The useful move is to identify the smallest set of facts that would change your decision, then wait for those facts to land.

Additional context: early-cycle stories often look bigger in headlines than in day-to-day impact. The useful move is to identify the smallest set of facts that would change your decision, then wait for those facts to land.