Following weeks of reports, Xbox has officially announced it has severed its connection with two studios, which have gone independent as a consequence of this. Meanwhile, it’s preparing to sell two more studios. In total, it is shedding four different studios, and also laying off 4,800 employees in the largest layoffs in Xbox history.
It’s not fully clear yet how many of its studios have been impacted by their layoffs and if there are any high-profile layoffs in the mix. We do know the two studios that have gone independent, which are Compulsion Games and Double Fine Productions. Meanwhile, on top of this, it is preparing to sell Undead Labs and Ninja Theory. It also sounds like Bethesda’s Arkane is going to be sold as well, but the verbiage around this is less clear. Compulsion Games and Double Fine did not have any announced games with Xbox, but Ninja Theory and Undead Labs did with Senua and State of Decay 3, respectively. It sounds like these projects will finish under their new ownership. Meanwhile, it’s completely unclear what the future of Arkane’s Marvel’s Blade is.
Statement From Xbox
“Compulsion Games and Double Fine Productions will return to management and transition to independent studios with their IP, catalog, and runway for their next games,” reads a snippet from a much larger statement released today by Xbox CEO Asha Sharm. “Ninja Theory and Undead Labs have entered terms to join new ownership with funding to complete and grow Senua and State of Decay 3. In France, Arkane’s management is beginning required consultation with its Works Council to review potential strategic options.”
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