All articles tagged with #studio closures
Polyarc, the Seattle studio behind Moss, has shut down after nearly 12 years, winding down development and posting a farewell message. The closure comes amid a tough year for VR, with Meta and other studios cutting staff and downsizing, underscoring ongoing challenges in the virtual‑reality sector.
Microsoft’s Xbox division reportedly plans sweeping layoffs starting July 6, including shutting down Arkane Studios and canceling the Blade project, with five studios potentially closed or sold (Compulsion Games, Double Fine, Ninja Theory, Undead Labs, Arkane). The moves follow a memo from CEO Asha Sharma and Chief Content Officer Matt Booty about over-extension, and come amid ongoing industry layoffs and prior studio restructurings; unions are pushing for transparency and good-faith negotiations.
Microsoft‑owned Undead Labs, maker of State of Decay and State of Decay 3, is reportedly at risk of closure as part of a broad Xbox studio reset that could trigger hundreds of layoffs if buyers aren’t found; Undead Labs alone could see around 110 jobs cut, with additional cuts at other studios, with layoffs expected to begin in early July.
Despite trailers and a positive alpha, State of Decay 3 is at risk of cancellation as Microsoft reportedly seeks buyers for Undead Labs and contemplates more studio closures amid Xbox cost-cutting, with Game Pass deals paused and trust in upcoming Xbox announcements eroding.
Xbox Chief Strategy Officer Matthew Ball dismissed rumors of reversing Microsoft's exclusive strategy, confirming Gears of War: E-Day and Clockwork Revolution will stay exclusive and that signature exclusives will continue to arrive each year; the piece also notes rumors of studio closures (Compulsion Games, Ninja Theory, Double Fine, Arkane Lyon) with efforts reportedly under way to keep them open.
Bloomberg reports several Microsoft-owned Xbox studios—including Double Fine, Compulsion Games, and Ninja Theory—are negotiating buybacks to regain independence to avert closures, amid a broader leadership and budget reset under new Xbox leadership. The Verge and Kotaku corroborate that some studios are at risk and that staff have been briefed on potential shutdowns, signaling a potentially drastic reconfiguration of the Xbox lineup.
Reports suggest several Xbox Game Studios are at risk of closure or may be spun off as independent entities, including Compulsion Games, Double Fine, and Ninja Theory. The moves appear tied to portfolio consolidation and Game Pass economics, sparking concern for staff and what this means for Xbox’s upcoming lineup.
A social-media rumor from Insider Gaming’s Mike Straw claimed two Xbox Game Studios could be closed in 2026, naming Compulsion Games and Arkane as the at-risk studios; later coverage (Kotaku) has echoed Compulsion as a potential shutdown, though Microsoft has not confirmed anything. The chatter surfaces amid broader talk of Xbox job cuts and lineup changes, with fans debating which teams might be affected, while the industry remains cautious and notes the studios’ recent and ongoing projects.
Ubisoft is closing Winnipeg and Belgrade studios and restructuring another, cutting around 380 jobs. Ubisoft Barcelona will narrow its focus to Rainbow Six projects, with Montreal and other units affected as part of a broader cost-cutting reorganization tied to its Tencent-backed Vantage initiative and ongoing studio consolidations after earlier closures.
Ubisoft is shuttering its Winnipeg and Belgrade studios and planning up to 380 layoffs as part of a broader restructuring that creates five creative houses and shifts the Barcelona operation to focus on Rainbow Six; Winnipeg and Belgrade were tied to the company’s engines and multiple titles, while the plan includes a five‑day on-site work mandate and follows prior global cuts and a Tencent investment, with unions having staged strikes earlier in the year.
Dark Outlaw Games is the latest PlayStation first-party studio to shut down, continuing a string of closures since the PS5 era (including Japan Studio, Bluepoint, London Studio, Neon Koi and others). Critics argue the leadership under Hermen Hulst has steered Sony away from traditional single-player experiences toward live-service/mobile bets, even as layoffs ripple through the wider PlayStation group and projects are cancelled or redirected.
Ubisoft has launched a major reset, canceling six games (including Prince of Persia: The Sands of Time remake), closing two studios (Stockholm and Halifax) and delaying seven titles to focus on open-world, live-service games; shares fell about 33% on the news as the company pursues sustainable growth amid rising development costs, with Vantage Studios tasked to turn its big franchises into annual brands.
Microsoft's Xbox division has undergone significant layoffs, affecting over 9,000 employees across various projects including the cancellation of games like Everwild and Perfect Dark, and the closure of studios such as The Initiative. The layoffs are part of a broader restructuring aimed at focusing on strategic growth areas amid industry challenges, with Xbox emphasizing support for impacted staff despite the difficult circumstances.
Microsoft announced significant layoffs affecting around 9,000 employees worldwide, including multiple Xbox studios such as Raven Software, Turn 10 Studios, Rare, and others, leading to game cancellations like Everwild and the shutdown of projects like the MMORPG Blackbird. Despite the layoffs, Xbox's business remains strong, with Microsoft focusing on prioritizing its most promising opportunities to ensure future success.
Ubisoft will sunset its game XDefiant in 2025, leading to the closure of its San Francisco and Osaka studios and affecting nearly 300 employees. The decision comes as the game failed to attract enough players to justify further investment. While some team members will transition to other roles within Ubisoft, a small team will maintain XDefiant until its servers shut down in June 2025. This move is part of Ubisoft's broader cost reduction strategy, which includes targeted restructuring and reduced external spending.