Xbox Is Reportedly Shutting Down Several Game Studios

Compulsion Games, Double Fine and Ninja Theory are reportedly being shuttered.

Xbox is reportedly looking to pull the plug on a few game studios, with Montreal’s Compulsion Games, San Francisco’s Double Fine, and England’s own Ninja Theory apparently on the chopping block.

According to a well-known video games journalist Jason Schreier, things might not be completely over just yet. It looks like these studios are actively negotiating spin-offs to try and dodge total closure. There is a chance they could buy themselves back from Xbox and return to life as indie outfits, though the sad reality is that a lot of developers will probably lose their jobs along the way.

It is a massive blow considering what these teams have been up to lately. Compulsion Games only just put out South of Midnight last year.

(credit: Compulsion Games)

Meanwhile, Double Fine, who everyone knows for the Psychonauts series, spent the last year releasing smaller projects like Keeper and Kiln.

(credit: Double Fine)

Perhaps the biggest surprise here is Ninja Theory.

(credit: Ninja Theory)

The UK studio literally just announced a brand new Hellblade game at the Xbox Games Showcase last week, making this sudden shift a pretty bitter pill to swallow for fans and employees alike.