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One of the Best Games on Xbox Game Pass Is From a Studio Microsoft Is Potentially Shutting Down

At least three Xbox-owned studios are at risk of closure as the company’s reset and layoffs threaten Compulsion Games, Bloomberg reported.

Summary by Polygon
On June 10, Bloomberg reported that Xbox was planning major layoffs for July. Around the same time, Xbox CEO Asha Sharma and CCO Matt Booty published a pretty dire memo for employees about an impending “Xbox Reset.” A week later, that “reset” is starting to look like a bloodbath: at least three Xbox-owned studios are in danger of being closed, and they’re not the only ones at risk.
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Prompt-based games are in the starting blocks. But other reasons are responsible for the current studio death at Microsoft

·Vienna, Austria
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It's Friday, which means it's time for another episode of The Gamereactor Show. In today's release, episode number 96 of the show, we focus our attention on what is undoubtedly the most important news of last week, with special emphasis on the "massacre" being produced on Xbox. We talk about the studios and equipment that apparently run the risk of having Microsoft shut them down or even selling them, and what this could ultimately mean for Xbox…

Asha Sharma's appointment as the top executive at Xbox sparked outrage among the community, fueled by news of large-scale layoffs and studio closures. Experts agree that this is part of a strategy to radically streamline the division. Gaming analyst Joost van Drenen is convinced that the transformation within Xbox is a direct implementation of Sharma's plan for structural reduction... The post Analyst: Xbox Studios at Risk of Closure Due to Mana…

It must be said that after the appointment of Asha Sharma to the position of CEO, it moved pretty well at Xbox. And apparently, not well: after several major acquisitions, the firm would be in the phase of permanently closing some of its studios. In the collimator are Compulsion Games and Ninja Theory, the respective creators of South of Midnight and Hellblade. A particularly hard blow to the latter, who announced a new opus d'Hellblade not even…

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Le Café du Geek - LCDG broke the news on Thursday, June 18, 2026.
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