Microsoft's gaming division is heading into what insiders are calling a brutal "reset." Across June 15-16, 2026, multiple outlets reported that Xbox is closing or spinning off several first-party studios — and that the cuts may be far from over.
What's been reported, and by whom
The Verge reported that Xbox decided to shut down Ninja Theory (the Hellblade studio) on Monday, June 15 — just over a week after the team announced Senua, the next Hellblade game, at the Xbox Games Showcase on June 7.
Bloomberg's Jason Schreier reported that Compulsion Games (South of Midnight), Double Fine (Psychonauts) and Ninja Theory were in active negotiations to spin off and avoid outright closure, with some teams allowed to seek new buyers.
"The Xbox of July will be radically different from that of June."
— Jason Schreier, Bloomberg
Insider Gaming's Mike Straw added that Arkane Studios (Dishonored, Deathloop) is also at risk, and that at least two studios could close by year-end — though not Obsidian or Rare.
"Everything is on the table at Xbox."
Double Fine, the only affected studio to comment, posted a single nervous emoji:
"😅"
It may not stop at Xbox
BFMTV journalist Sylvain Trinel warned the wave could spread industry-wide in July, naming Don't Nod and Quantic Dream and urging people to watch Bethesda Game Studios, id Software and BioWare. Insider NateTheHate similarly described the coming weeks as a "bloodbath," while noting Double Fine may have a buyout clause (like Toys for Bob) to leave Microsoft.
What it means for players
The most immediate casualty is creative momentum: with Ninja Theory reportedly closing, the freshly announced Senua is widely expected to be shelved. Nothing has been delisted yet, but if you've wanted the studio's acclaimed last release, it's cheap right now: Hellblade II: Senua's Saga is from $12.49 on PC across the stores we track.
FAQ
Has Ninja Theory been shut down?
The Verge reports Xbox made the decision on June 15, 2026. Microsoft has not issued a full public confirmation; the studio may still seek a buyer.
Which Xbox studios are at risk?
Reports name Ninja Theory, Compulsion Games, Double Fine and Arkane Studios, with wider layoffs expected across the division in July.
Are any games being delisted?
No delistings have been announced. Existing titles like Hellblade II remain on sale.
Sources
- The Verge — Xbox reportedly shutting down Ninja Theory
- Bloomberg (Jason Schreier) — Xbox studios in spin-off talks
- Kotaku — Compulsion Games closure report
- Insider Gaming / Mike Straw (X)
- @DoubleFine (X)
- Sylvain Trinel, BFMTV (X)
