You guys gotta pay attention because Microsoft just announced a massive shakeup of its Xbox game studios as part of their recent layoffs and restructuring — this is huge for several reasons and I want to break down what every studio got. CEO Asha Sharma confirmed that four studios are being moved, with two going independent while keeping their IP, which is the kind of win you don't see often in these situations. Double Fine (behind Psychonauts, Keeper, Kiln) will become an independent studio and retain ownership of its games catalog after seven years under Microsoft, a move they shared separately thanking everyone for their patience during this transition. Compulsion Games — the team behind Contrast, We Happy Few, and South of Midnight — is also going independent with its IP and catalogue intact, which means those critically acclaimed titles will continue to be published by them rather than being swallowed back into Xbox Game Studios.
For Ninja Theory and Undad Labs, the situation is different but still has some silver lining in it: both joined new ownership groups that provided funding specifically to finish their announced projects — Senua Fallen Chosen for Ninja Theory and State of Decay 3 for Undead Labs respectively - which at least means those games will actually get released. Then there's Arkane, the studio behind Metroid Dread, where things are more uncertain; management is currently consulting with its Works Council to review "potential strategic options" as they move forward on their Blade project. It shows how Microsoft was trying different strategies for each team rather than a one-size-fits-all approach during this restructure — some got IP back, some got fresh funding to finish existing work, and others are still figuring things out in real time. Definitely follow these studios over the next few months because we're going to see how independent operation actually works for them.
Source: https://www.theverge.com/games/961749/xbox-layoffs-compulsion-double-fine-indie
For Ninja Theory and Undad Labs, the situation is different but still has some silver lining in it: both joined new ownership groups that provided funding specifically to finish their announced projects — Senua Fallen Chosen for Ninja Theory and State of Decay 3 for Undead Labs respectively - which at least means those games will actually get released. Then there's Arkane, the studio behind Metroid Dread, where things are more uncertain; management is currently consulting with its Works Council to review "potential strategic options" as they move forward on their Blade project. It shows how Microsoft was trying different strategies for each team rather than a one-size-fits-all approach during this restructure — some got IP back, some got fresh funding to finish existing work, and others are still figuring things out in real time. Definitely follow these studios over the next few months because we're going to see how independent operation actually works for them.
Source: https://www.theverge.com/games/961749/xbox-layoffs-compulsion-double-fine-indie