Video game studios closing isn’t anything extraordinary. Over the years, many have come and gone, and that’s just how it is. A good example is Acclaim Entertainment, and if you grew up in the 90s, that name brought you so many good games. Titles like Mortal Kombat and NBA Jam were their top sellers. That being said, Microsoft is in a bloodbath as it may or has already shut down several game studios under its ownership.
What’s happening?
Jobs are getting cut, and studios are getting shut down over at Microsoft. It doesn’t matter if the studio made money or had successful titles; a lot of these are potentially getting shut down, unless they were already removed. While some of the higher workers may be reshuffled, it is clear that people will be out of a job in the coming months.
Studios in danger of getting closed
These are a couple of studios that are in danger of getting shut down. Some of them you probably know, and some of them have made some great games in the past.
Arkane Studios
This is the big one out there due to the fact that they are currently making Blade. Rumors are going around that Blade may be cancelled due to the Arkane Studios getting shut down. However, there is some hope that Arkane may be sold off somewhere else. If that happens, they may still be able to continue with Blade, but they haven’t had a good track record in recent years. The flop that was Redfall isn’t helping its case.
Ninja Theory
This studio has been hit or miss, and with its most renowned title being the DmC reboot attempt, it looks like Ninja Theory is on the chopping block. They are currently developing another Senua game, so that is potentially out if Ninja Theory gets chopped down.
Double Fine
They’ve been around for more than two decades, and their claim to fame game is the Psychonauts series. They’ve had a good amount of other games like Brutal Legend and more. Their latest game released back in April of 2026 was Kiln. That game is currently getting mixed reactions, and the sales aren’t really that high. They’re definitely in trouble, and if they get the axe, the Psychonaut series may come to an end.
Compulsion Games
Only having three games under their studio, looks like this one is definitely getting the boot. It doesn’t help that its recent game, South by Midnight, is not well received and, more importantly, the sales aren’t there to back it all up. They also have no current game in development, so it will be an unfortunate end for this studio.
Undead Labs
While Compulsion Games only has three titles under their belt, Undead Labs only has two in the two decades they’ve been around. They only have both State of Decay games under the name. The third one is currently being developed, and a trailer even came out. However, reception for it isn’t going well. So that game is also at risk, and since it isn’t doing well, it’s looking a bit grim for the studio.
