Double Fine and Compulsion Confirm Status Following Xbox Cuts, Get to Keep Franchises Such as Psychonauts and South of Midnight
Microsoft is restructuring its gaming division as the studios keep their franchises and new ownership talks continue for two others.
- Microsoft announced the spin-off of four Xbox game studios—Compulsion Games, Double Fine Productions, Ninja Theory, and Undead Labs—this afternoon as part of a restructuring involving approximately 3200 job losses, or 20 percent of staff.
- Xbox CEO Asha Sharma cited declining annual revenue and rising hardware costs for the restructuring, stating the company "lost 64 cents for every dollar we invested" in certain studios annually.
- Double Fine Productions and Compulsion Games will return to independent management, retaining ownership of their game catalogs and intellectual property including South of Midnight after seven years under Xbox.
- Ninja Theory and Undead Labs have entered terms to join new ownership with funding to complete their next announced games, Senua and State of Decay 3. Arkane Studios management is beginning required consultation with its Works Council on strategic options.
- Before their 2018 acquisition, Double Fine was independent for 18 years and Compulsion Games for nine years. The industry continues navigating high costs and corporate strategies prioritizing proven franchises like The Elder Scrolls and Fallout.
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Compulsion Games regains its independence. Acquired in 2018 by Microsoft's Xbox video game division, the Montreal studio behind We Happy Few and South of Midnight games will retain ownership of its current and past titles, and has received an undisclosed amount from Microsoft to allow it to fly with its own wings.
This Canadian video game studio just swept the awards circuit. So why is it reportedly closing?
Compulsion Games recently won a BAFTA, a Peabody and 7 Canadian Game Awards for its acclaimed action-adventure title South of Midnight. But restructuring at parent company Xbox has put the Montreal-based developer’s future in question.
Former Xbox studios Double Fine and Compulsion will keep games after going indie
Microsoft is spinning off four of its Xbox game studios - Compulsion Games, Double Fine Productions, Ninja Theory, and Undead Labs - as part of the restructuring announced today. However, two that are going independent, Double Fine and Compulsion, will get to keep their franchises and games catalogs, according to Xbox CEO Asha Sharma. "Compulsion Games and Double Fine Productions will return to management and transition to independent studios wi…
Independent again: Psychonauts studio Double Fine, and South of Midnight studio Compulsion, react to leaving Xbox and taking all of their games with them
Psychonauts and Keeper developer Double Fine Productions, and South of Midnight and We Happy Few developer Compulsion Games, have reacted to their new futures as it's confirmed they will become independent developers again.
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