Things can change quickly in the video game industry, as evidenced by recent events. Xbox was flying high after the 2026 launch as a number of exciting titles were revealed. However, any recognition the company received from this showcase quickly dissipated when it was revealed that several studios under the Xbox umbrella may be on the verge of closure.
Naturally, many people are unhappy about this as several beloved studios are rumored to be in jeopardy. These are all the ones that can have trouble.
Ninja theory
Ninja Theory is a studio that has been around since 2000. The company created several games during its first decade of existence, and then began releasing titles regularly in 2010. Xbox bought the studio in 2018, but since then has continued to create games for various systems, not just Xbox.
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The studio is probably best known right now for the Senua series, which began in 2017 with the release of Hellblade: Senua's Sacrifice. This first game made an incredible impression with its portrayal of various mental health issues. The game doesn't just show that your character suffers from a mental illness; he tries to make you feel it too. The best example of this is the use of binaural audio, which attempts to replicate the feeling of having multiple voices inside your head. This is a perfect example of the innovative game design that Ninja Theory brings.
A third Senua game is currently on the way, despite the studio's uncertain future.
Along with the Senua games, Ninja Theory also has several cult classics to its credit. The first of these is the underrated action-adventure Heavingly Sword. It's a very exciting and graphically impressive title that, strangely enough, was released exclusively on the PlayStation 3 back in 2007. A few years later came another overlooked action-adventure title called Enslaved: Odyssey to the West. This game is a very loose adaptation of the classic story Journey to the West. It features brilliant writing, a deep story and a powerful performance from the iconic Andy Serkis.
Games of compulsion
Compulsion Games has been around for a while, having been founded back in 2009. Nine years later, they were bought by Xbox. Despite the studio's longevity, you won't see its name in many credit sequences because it hasn't made many games. There were actually only three, as the studio seems to have taken a quality over quantity approach.
Compulsion Games' first title was Contrast in 2013. It's a puzzle-platformer that wasn't exactly loved upon release, but it has its fans. These fans love the game's noir aesthetic and visuals. Moreover, it offers unique gameplay that includes both 2D and 3D perspectives. So the game is at least original. The second title of the We Happy Few studio is also original. The game may not have come together as the developers or fans would have hoped, but it offers a unique dystopian world whose population is kept in line by a hallucinogenic drug. Storywise, the game is interesting. Gameplay wise, it's a bit clunky.
Arguably Compulsion Games' best title was its latest, South of Midnight. This is an action-adventure title set in a fantasy version of the Deep South. There's a lot to like about the game, including its dynamic art style and beautiful soundtrack. Moreover, the story is very emotional and well written. Overall, it's simply a very solid game that's different from other action-adventure games on the market. And that's what Compulsion Games has always delivered: uniqueness. None of his games are very similar to what other studios produce. In a gaming environment where imitations abound, Compulsion Games' desire to do things differently would be missing.
Double Fine Productions
Double Fine Productions was founded in 2000 and has been developing games regularly since 2005. She also often published her own games. However, things changed when the company was bought by Xbox in 2019, as all games were then published by Xbox Game Studios. However, Double Fine had very much established itself by then.
The studio's legacy began in 2005 with the release of the original Psychonauts. The game cannot be called a great commercial success, but it certainly captured the hearts of many players and became a real cult classic. It cultivated its audience by being a clever, original 3D platformer. There's a lot to like about the title, but perhaps its biggest strength is the level design. Each level is based on the mind of one of the game characters. This allows you to play in some different and creative environments. Creativity is also seen in the story, character models and writing. There really is no game like Psychonauts – outside of its 2021 sequel.
Although Psychonauts is the game the developer is best known for, there are plenty of other great Double Fine games as well. Brutal Legend, Costume Quest, Iron Brigade, Keeper, Kiln and more. Most of these titles will sound familiar to people with Xbox Game Pass, as Double Fine has regularly produced solid games for the service. So if the studio closes, Game Pass may be hurt in the long run. Plus, everyone will be missing out on a bunch of cleverly designed games that Double Fine is known for.
Arkane Studios
Arkane Studios was founded in 1999 and its first game, Arx Fatalis, was released in 2002. In 2010, the studio was bought by ZeniMax Media, which was later bought by Microsoft, which is why Arkane is under the Xbox Umbrella. This acquisition took place in 2021, but Arkane was already an established studio by then.
A few games that really got people to take notice of Arkane were Dishonored and its sequel, Dishonored 2. Both titles are exceptional immersive sim games that give you a lot of freedom to achieve your goals however you see fit. They also include narrative choices and organic storytelling that doesn't rely on cutscenes. All of these things later became the basis of the Arkane titles.
After the Dishonored games, Arkane solidified its reputation even more with the likes of Prey and Deathloop. Prey sees you wandering around a space station full of dangerous aliens and trying to figure out how to deal with them. Deathloop is a time loop game where you have to figure out how to eliminate all your targets in the time given to you. Each of Arkane's games differs from the others in several ways. Nevertheless, a different visual and gameplay style is prevalent in all of the studio's titles. And those styles still work, so there's still room for more games like this if Arkane can stick around.
