Microsoft Games: Double Fine, Ninja Theory, and More at Risk of Closure

The video game industry is on the brink of change as Microsoft's new Xbox CEO, Asha Sharma, announced the Xbox reset. This move could impact many studios, including Double Fine, Ninja Theory, and several other studios currently under Microsoft's umbrella.

Compulsion Games may not be the only studio struggling to stay afloat during this shift. According to reports from Bloomberg, Double Fine is in active negotiations to spin off but is expected to undergo job losses. Meanwhile, Ninja Theory will cease to exist unless it finds a buyer.

Double Fine was founded 26 years ago by Tim Schafer, a renowned developer, after leaving LucasArts. The studio is best known for its hit games, such as Brütal Legend, Broken Age, and Psychonauts. Microsoft acquired Double Fine in 2019 under Phil Spencer's direction.

Schafer praised Spencer and Microsoft for respecting Double Fine's creative independence in a 2022 summit. However, now with the Xbox reset, there are concerns about the studio's future.

Xbox is reportedly overextended with Microsoft still enjoying a nearly $32 billion profit last quarter. Furthermore, the head of Xbox Game Studios and its chief of staff have stepped down.