- A journalist has revealed that 2 big Xbox studios are at risk of closure in 2026.
- These include Dishonored studio, Arkane, South of Midnight Studio, and Compulsion.
- This is a part of Xbox’s rigorous restructuring to help the company get back on track.
Microsoft is in the middle of resetting Xbox as a brand, and there have already been some meaningful changes. While those have been positive for the brand’s image, this new upcoming development isn’t something most will admire.
Previously, there were reports that mass layoffs are incoming, and as a part of that, Xbox Studios, Compulsion Games, and Arkane are at risk of being shut down. Both studios have been influential to the company in the past.
Why it matters: Xbox has managed to win some of its lost fans back following a series of highly-demanded changes, including bringing back exclusives, game pass price reduction, and more, but this will lead to a massive backlash.
As a part of the restructuring, Insider Gaming’s Mike Straw revealed that 2 of Xbox’s studios are at risk of closure. He later posted that those studios, according to people he talked to, are Arkane and Compulsion.
Arkane holds a legendary status as it was the studio behind the highly popular Dishonored franchise. Its Austin division was also shuttered after Redfall’s failure, and the Lyon team is supposed to be working on Blade.
The other studio is Compulsion Games, whose recent projects include South of Midnight, which had a fairly decent reception and was an award-winning title, so these couldn’t be easy decisions at all.
Now, we must say that take this with a grain of salt, as nothing is official yet. But we most definitely know that Xbox is indeed going through restructuring and that results in unfortunate events like layoffs and closures.
What are your thoughts on Xbox shutting down its Arkane and Compulsion Games studios? Let us know your opinions in the comments or join the discussion at the official Tech4Gamers Forum.
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News Reporter
Abdullah is an avid gamer who primarily plays single-player titles. If you can’t find him anywhere, he’ll probably be at his desk playing The Witcher 3 for the millionth time. When he isn’t playing games, he’s either reading or writing about them.
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