Overview
- Multiple outlets reported on Monday that several Microsoft-owned Xbox Game Studios, notably Compulsion Games, Ninja Theory and Double Fine, are negotiating with Xbox to buy themselves out or face closure.
- Studio leaders are said to be pursuing buyouts or looking for buyers to spin off as independent companies while employees have been told the situation is uncertain and given leave to seek other work.
- Xbox CEO Asha Sharma and Chief Content Officer Matt Booty have launched a 100‑day 'Xbox Reset' that cites about $20 billion in recent investments, falling revenue and rising hardware and component costs as reasons for reexamining studio spending.
- Reporting says broader cost cuts and large layoffs are planned to take effect after Microsoft’s fiscal year ends on June 30, and several senior Xbox executives, including the head of Xbox Game Studios, have departed.
- Analysts and reporting note this follows a pattern of big acquisitions then later consolidation, and the reset could mean fewer resources for original, mid‑tier projects while investment shifts to top franchises and possible structural changes to Xbox.