Microsoft Reportedly Planning a Massive Overhaul of Xbox Studios

The gaming world is abuzz with news that Microsoft owned Xbox studios are at risk of being shut down.

According to reports, Compulsion Games, the developer of South of Midnight, Double Fine, the creator of Psychonauts, and Ninja Theory, the mastermind behind Hellblade, are just a few of the studios that have started negotiating with Microsoft to buy back their independence from Xbox Studios.

While the exact number of affected studios is not yet clear, Insider Gaming's Mike Straw claims that staff at Arkane are 'scared' as they await news about the studio's fate.

Compulsion's potential closure was corroborated by Kotaku, while sources from The Verge revealed that the staff at Ninja Theory were informed of the impending closure on Monday.

Just recently, Xbox CEO Asha Sharma had announced a business 'reset' for the brand, which included slashing budgets and a significant number of staff layoffs.

The changes don't stop there; the refocusing on console exclusives has already seen the skipping of PlayStation 5 for Gears of War: E-Day and Clockwork Revolution.

This major overhaul could change the face of Xbox in a drastic way.

The implications of these studio closures are far-reaching, and we will keep you updated on any developments in this story.