A legendary game studio faces an increasingly uncertain future.
A Look at Xbox’s Global Studio Portfolio: Active and Inactive Studios as of July 2026
Chris Munson, a seasoned professional with 15 years of experience at Microsoft, has made significant contributions to the gaming industry.
The majority of job cuts are occurring within Microsoft’s Xbox division and its commercial sales teams.
No need to take sides with Xbox, PlayStation, or even Taylor Swift.
Double Fine and Compulsion Games are embarking on independent journeys, while Microsoft is parting ways with Ninja Theory and Undead Labs.
Double Fine and Compulsion Games are set to operate as independent studios, retaining their intellectual properties, game catalogs, and the freedom to develop their upcoming projects, according to Xbox CEO Asha Sharma.
The drop follows a widely criticized price increase implemented in 2025.
Xbox’s separation from Ninja Theory, Compulsion, and Double Fine highlights a troubling trend, with Undead Labs facing the most significant issues of mismanagement among them.
Arkane, known for its work on the Dishonored series, faces uncertainty as Xbox announces the closure of four studios and a significant reduction of 3,200 jobs.
The community manager has expressed that the dedicated team is eager to reinforce their commitment to the game.
While several of Xbox’s cherished studios continue to operate, the significant layoffs signal challenging times ahead for the gaming industry.
Xbox has initiated a wave of layoffs today, following reports of substantial job cuts anticipated for July, with more reductions likely on the horizon.
Xbox CEO Asha Sharma announces that four studios are departing from Microsoft, while the future of Arkane Studios remains unclear amidst widespread layoffs.
Significant transformations are on the horizon for Microsoft’s gaming division following a series of missteps.
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