Microsoft's gaming division may be facing significant downsizing. As reported by Bloomberg journalist Jason Schreier, Xbox is preparing to part ways with at least three teams.
Senua
According to Schreier, the threat of closure looms over:
- Compulsion Games — creators of Contrast, We Happy Few, and South of Midnight;
- Double Fine Productions — creators of Psychonauts and numerous other games. Their latest project to date is Kiln;
- Ninja Theory — creators of Hellblade. Notably, they announced the third installment of the series, Senua, just a week ago.
If Schreier's sources are to be believed, all three studios are currently negotiating with Microsoft, hoping to avoid closure. They are attempting to buy themselves out of the corporation to gain independence. Nevertheless, the journalist adds, even in such a scenario, significant layoffs within the studios are inevitable.
It is suggested that Xbox might go further and close additional studios. According to Schreier, even the most commercially successful teams are currently uncertain about their future. They fear potential impact from Xbox head Asha Sharma's desire to increase the division's profitability by focusing on major franchises. These claims are corroborated by Mike Straw of Insider Gaming — he also found out that Arkane Lyon, currently working on Marvel’s Blade, is on the list of potential closure candidates.
Previously, The Information reported on the risk of a large-scale restructuring of Xbox. It is suggested that within this framework, Microsoft might turn the division into a separate subsidiary, which it would either wholly own or co-own with someone else. The possibility of a complete sale of Xbox is also not ruled out.