Double Fine, Ninja Theory, and Other Xbox Studios Reportedly Negotiating to Avoid Closure
By
Robert DeFelice
Summary
A new report reveals that multiple XBOX-owned development studios, including Double Fine, Ninja Theory, and Compulsion Games, are reportedly seeking deals with XBOX to avoid potential closure amid significant changes the company has undergone in 2026. The report follows earlier claims that XBOX was planning to close Compulsion Games (developer of South of Midnight) and Ninja Theory (creator of Hellblade). The studios are now reportedly negotiating to stay open as uncertainty looms over XBOX's gaming division.
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Key quotes
· 3 pulledA new report sheds even more light on the current state of XBOX-owned development studios amid the many changes 2026 has brought to the company.
On June 15, Insider Gaming reported that XBOX was planning to close Compulsion Games, the developer of South of Midnight.
A new report has suggested that Ninja Theory, the creator of Hellblade, is being closed down.
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