Xbox Weighs Closing 3 Studios as Gaming Revenue Falls by $500 Million a Year
Updated
Updated · GamesIndustry.biz · Jun 15
Xbox Weighs Closing 3 Studios as Gaming Revenue Falls by $500 Million a Year
3 articles · Updated · GamesIndustry.biz · Jun 15
Summary
$500 million in annual revenue declines have pushed Xbox into reported talks over shutting Compulsion Games, Double Fine and Ninja Theory, with several other studios also said to be under review.
More than $20 billion spent on Xbox over the past five years excluding Activision Blizzard has not reversed the slide, and Microsoft is reportedly planning further layoffs alongside broader restructuring options.
Compulsion leadership is already negotiating with Microsoft over the studio's fate, while Bloomberg reported Double Fine and Ninja Theory are also trying to spin off to avoid closure.
The turmoil comes as Xbox Games Studios head Craig Duncan and chief of staff Louise O'Connor depart, even as the threatened studios include recent award winners such as South of Midnight developer Compulsion.