{"id":137626,"date":"2026-06-16T03:45:00","date_gmt":"2026-06-16T03:45:00","guid":{"rendered":"https:\/\/www.nintendolife.com\/#article-202639"},"modified":"2026-06-16T03:45:00","modified_gmt":"2026-06-16T03:45:00","slug":"multiple-xbox-studios-reportedly-in-active-negotiations-with-microsoft-to-avoid-closure","status":"publish","type":"post","link":"https:\/\/sickgaming.net\/blog\/2026\/06\/16\/multiple-xbox-studios-reportedly-in-active-negotiations-with-microsoft-to-avoid-closure\/","title":{"rendered":"Multiple Xbox Studios Reportedly In Active Negotiations With Microsoft To Avoid Closure"},"content":{"rendered":"<div class=\"media_block\"><a href=\"https:\/\/images.nintendolife.com\/56ce7626e6283\/large.jpg\"><img decoding=\"async\" src=\"https:\/\/images.nintendolife.com\/56ce7626e6283\/small.jpg\" class=\"media_thumbnail\"><\/a><\/div>\n<figure class=\"picture\" data-uuid=\"56ce7626e6283\"><a class=\"scanlines\" title=\"South of Midnight\" href=\"https:\/\/images.nintendolife.com\/56ce7626e6283\/south-of-midnight.large.jpg\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/images.nintendolife.com\/56ce7626e6283\/south-of-midnight.900x.jpg\" width=\"900\" height=\"506\" alt=\"South of Midnight\"><\/a><figcaption class=\"caption\"><em class=\"credit\"><span class><\/span> Image: Xbox<\/em><\/figcaption><\/figure>\n<p>Reports this week have revealed multiple studios under the Xbox division are currently in &#8220;active negotiations&#8221; with Microsoft about their future. This supposedly includes Compulsion Games, which released its new action-adventure <a href=\"https:\/\/www.nintendolife.com\/games\/nintendo-switch-2\/south-of-midnight\">South of Midnight<\/a> on the Switch 2 in March.<\/p>\n<p>According to <a class=\"external\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2026-06-15\/studios-in-microsoft-s-xbox-division-brace-for-closures?\">Bloomberg<\/a>, Ninja Theory (known for the stunning <a href=\"https:\/\/www.nintendolife.com\/games\/switch-eshop\/hellblade_senuas_sacrifice\">Hellblade<\/a> series) and Tim Schafer&#8217;s talented studio Double Fine (<strong><a href=\"https:\/\/www.purexbox.com\/games\/xbox\/psychonauts\" class=\"external\">Psychonauts<\/a><\/strong> and <strong><a class=\"external\" href=\"https:\/\/www.purexbox.com\/games\/xbox-series-x\/kiln\">Kiln<\/a><\/strong>) are also part of the talks. Although these studios are believed to be &#8220;at risk of being shuttered&#8221;, each team may be given the chance to go independent or find another buyer.<\/p>\n<p><a class=\"external\" href=\"https:\/\/www.theverge.com\/games\/950204\/xbox-ninja-theory-shutdown-hellblade-senua\">The Verge<\/a> has expanded on this story &#8211; reporting employees at Ninja Theory have already been informed about the possible closure, and there are hopes the studio can find a buyer before this. <a class=\"external\" href=\"https:\/\/kotaku.com\/xbox-shuttering-south-of-midnight-peabody-award-compulsion-games-2000706065\">Kotaku<\/a> further notes how Compulsion&#8217;s leadership is currently in &#8220;negotiations&#8221; with Microsoft, but details have not been disclosed.<\/p>\n<p><a class=\"external\" href=\"https:\/\/bsky.app\/profile\/did:plc:2sbznsgllwokwgg3kud5gfgw\/post\/3modp44e3l223?ref_src=embed&amp;ref_url=https%253A%252F%252Fwww.purexbox.com%252Fnews%252F2026%252F06%252Frumour-journalist-suggests-two-xbox-studios-are-at-risk-of-being-closed-in-2026\">Insider Gaming<\/a> also claims Arkane Studios (the team developing <strong><a class=\"external\" href=\"https:\/\/www.purexbox.com\/news\/2026\/06\/xbox-fans-question-marvels-blade-absence-from-xgs-2026\">Marvel&#8217;s Blade<\/a><\/strong>) is concerned about its future. These reports follow Ninja Theory&#8217;s announcement of <strong><a href=\"https:\/\/www.nintendolife.com\/games\/switch-eshop\/hellblade_senuas_sacrifice\">Senua<\/a><\/strong> at the Xbox Showcase this month &#8211; a new game taking place <em>after<\/em> the events of the first two Hellblade titles. Hellblade was originally released on the Switch in 2019.<\/p>\n<p>As this story continues to develop, Bloomberg reporter Jason Schreier notes the &#8220;Xbox of July will look drastically different&#8221; to the &#8220;Xbox of June&#8221;.<\/p>\n<p><!-- cache: html:nintendolife.com\/ssl\/nintendo-switch-2\/related-articles:199428,87278 @ 1781635683 --><\/p>\n<aside class=\"block object-related\"> <\/aside>\n<p><em>If we hear any significant updates, we&#8217;ll let you know.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Image: Xbox Reports this week have revealed multiple studios under the Xbox division are currently in &#8220;active negotiations&#8221; with Microsoft about their future. This supposedly includes Compulsion Games, which released its new action-adventure South of Midnight on the Switch 2 in March. According to Bloomberg, Ninja Theory (known for the stunning Hellblade series) and Tim [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[],"class_list":["post-137626","post","type-post","status-publish","format-standard","hentry","category-nintendo-news"],"_links":{"self":[{"href":"https:\/\/sickgaming.net\/blog\/wp-json\/wp\/v2\/posts\/137626","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sickgaming.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sickgaming.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sickgaming.net\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/sickgaming.net\/blog\/wp-json\/wp\/v2\/comments?post=137626"}],"version-history":[{"count":0,"href":"https:\/\/sickgaming.net\/blog\/wp-json\/wp\/v2\/posts\/137626\/revisions"}],"wp:attachment":[{"href":"https:\/\/sickgaming.net\/blog\/wp-json\/wp\/v2\/media?parent=137626"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sickgaming.net\/blog\/wp-json\/wp\/v2\/categories?post=137626"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sickgaming.net\/blog\/wp-json\/wp\/v2\/tags?post=137626"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}