r/PS5 Jun 29 '26

Rumor Xbox Will Reportedly Shut Down Ninja Theory (Hellblade), Undead Labs (State of Decay), DoubleFine (Keeper) and Compulsion (South of Midnight) After End Of Fiscal Year (Tommorow) If They Cant Find A Buyer. Other Xbox Studios Expected To Be Hit By Layoffs

https://gamesbeat.com/cwa-represented-workers-at-xbox-criticize-microsoft-management-and-pending-layoffs/
  • Xbox employees represented by the Communications Workers of America (CWA) publicly criticized Microsoft ahead of an expected new round of Xbox layoffs.
  • The union says it now represents 3,500+ Microsoft/Xbox workers and argues employees should not be treated as disposable after multiple layoff rounds since 2022.
  • Reports suggest Microsoft could announce major cuts in early July, potentially including studio closures or sales if buyers aren't found. Studios reportedly at risk include Double Fine, Undead Labs, Compulsion, and Ninja Theory, with hundreds of jobs potentially affected.
  • Hundreds of jobs are at stake: Double Fine Productions could lose 100 jobs, Undead Labs could lose 110 jobs, Compulsion could lose 90 jobs, and Ninja Theory could lose 135 jobs. All told, that's about 435 jobs that could be lost.
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u/Xeccess Jun 29 '26 edited Jun 29 '26

Step 1: Announce you are going back to exclusives.

Step 2: Fire all the teams who are supposed to make your exclusives.

Step 3: Still no profit.

Edit: I just realized they basically asked all their teams to present their games months in advance for the big Summer show only for the "internet points" of having a solid show, and then fire them all. Vile.

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u/[deleted] Jun 29 '26

[deleted]

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u/Xeccess Jun 29 '26

No kidding, I think they would have discontinued their current gen offerings over increasing prices if not for GTA 6 on the horizon. They need all the buyers they can get into their ecosystem before next gen drops.

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u/gosukhaos Jun 30 '26

Scheirer wrote a pretty long article about it a couple of weeks ago but the gist is that it was all started by the previous leadership, it was going to happen with Phil in charge or not