Microsoft is planning to close or sell several game development studios, including Ninja Theory, Double Fine, and Compulsion Games. This restructuring follows the recent feature of Ninja Theory’s upcoming title, Senua, at the Xbox Games Showcase.
New Xbox CEO Asha Sharma is directing a business reset to reduce costs and prioritize core franchises. Reports indicate Microsoft showcased Senua to increase Ninja Theory's appeal to potential investors or buyers.
The decision to divest from these studios was reportedly finalized before the showcase. This move has created significant uncertainty for the future of the studios and their announced projects.