Compulsion Games & Arcane Studio reportedly at risk of closure

Ninja Theory is also at risk!

It appears that Microsoft Xbox is once again going through a big restructuring of its gaming division, which could result in more layoffs. According to a new report, Compulsion Games & Arcane Studio are at risk of closing down.

For now, Xbox has not made any official announcement or released any statement. But we might see some huge and unexpected moves from Xbox in the upcoming days. Let’s check out more details in this article.

Two Xbox Studios could be on the chopping board

The latest claims from Insider Gaming journalist Mike Straw has stated that multiple sources have informed him that Arkane Studios and Compulsion Games are at risk of closure.

This report exactly follows the earlier rumors that were suggesting that Xbox could implement significant layoffs and organizational changes throughout 2026. According to rumors, this is a part of a broader strategy to improve profitability and streamline operations.

Compulsion Games potential closure

Compulsion Games was acquired in 2018. They are best known for titles like We Happy Few. They recently released South of the Midnight, which got bombed by gamers.

Only journalists loved the game, while no one else paid attention to the game. There was much controversy regarding the DEI and Sweet Baby Inc getting involved with the game. Many gamers and fans aren’t surprised that this studio might be on the chopping board.

Arcane Studios

This is the most surprising news that fans and gamers heard. Arkane is one of the most respected studios in the gaming industry.

They are best known for the Dishonored franchise and recently they have been working hard on the development of Marvel’s Blade.

Here about the closure of this studio is surely a shock for many gamers and fans. Everyone is now worried about what will happen with the Blade game.

Conclusion

There are also some new reports that are suggesting that Xbox is also looking to close Ninja Theory, the creator of the Hellblade franchise.

This studio just revealed their new upcoming game, Senua, which is scheduled for 2027. It is important to note that Xbox or Microsoft has not announced or released any statement officially.

For now, fans can wait and see how the upcoming layoffs are going to impact Xbox and the gaming division.

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