Several Xbox game studios were exposed to be at risk of closing, and it was rumored that they were negotiating with Microsoft to "become independent or be acquired" to save themselves.

Affected by the recent poor financial situation, the Xbox business line is not only expected to launch a new round of layoffs in July this year, but some development studios affiliated with Xbox Game Studios may also be on the verge of closure in the next few months. Information from insiders shows that two studios, Arkane Lyon and Compulsion Games, have been named as potentially affected, causing employees to be deeply uneasy about their own prospects.

Arkane Lyon is the main developer of the Deathloop, Dishonored series, and the ongoing Marvel’s Blade; Compulsion Games is known for works such as Contrast, We Happy Few, and the ongoing South of Midnight. The above news was first disclosed by Insider Gaming reporter Mike Straw on the Bluesky platform. Citing sources within the studio, he said that the recent atmosphere of internal communications and private conversations at Xbox Game Studios has made many employees "fearful" about the future of their studio.

In addition to Arkane Lyon and Compulsion Games, some studios that were previously considered relatively "safe" are now also exposed to the possibility of restructuring or even being divested. A report by Bloomberg reporter Jason Schreier further confirmed that multiple studios, including Double Fine Productions, Compulsion Games and Ninja Theory, have started negotiations with Microsoft to discuss leaving the Xbox system through "separation". Relevant options include allowing these studios to become fully independent operations, or to be purchased by other companies to avoid being shut down directly.

However, even if negotiations are reached, independence or acquisition is successful, industry insiders still generally expect that it is almost inevitable that there will be "significant layoffs" within these studios in the short term. The report pointed out that some employees have received internal notices and were clearly informed that the company's current financial situation is unstable, and it is recommended to prepare in advance for job-hopping or re-employment. Against this background, the outside world is worried that even if the legal entities are kept from being dissolved, these teams that once had a certain influence in the AA and AAA game fields will inevitably experience the pain of significant reduction in scale.

There are multiple signs that Microsoft is re-examining the overall input-output ratio of the Xbox business after completing a series of large acquisitions and continuing to increase its subscription business layout. In an environment of revenue pressure and high-cost development, further reducing the number of first-party studios and cutting redundant projects is seen as a means to improve profit margins and resource utilization efficiency. For medium and large studios that are deeply involved in narrative and immersive experiences, this means that their living space is being continuously squeezed under more stringent business indicators and cost assessments.

At present, Microsoft has not given public confirmation on the specific studio list or timetable. But as relevant news spreads among industry insiders and social media, the fate of studios such as Arkane Lyon, Ninja Theory, Double Fine, and Compulsion Games has become the focus of intense attention among player groups and developer communities. If there is ultimately a large-scale shutdown or forced separation from the Xbox system, it will not only have a direct impact on the affected employees and their families, but will also inevitably leave further shocks and uncertainties in the global gaming industry landscape.