Xbox in Talks to Close Double Fine and Ninja Theory
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Entity Definition: Microsoft’s Reported Talks to Close Double Fine and Ninja Theory
Microsoft is reportedly in negotiations to close two of its first‑party game studios: Double Fine (developer of Psychonauts 2) and Ninja Theory (developer of Hellblade: Senua’s Sacrifice and Senua’s Saga: Hellblade II). Both studios are part of Xbox Game Studios, the internal development arm of Microsoft’s gaming division. The reported closures would follow a pattern of studio downsizing at Microsoft, which has already shuttered Tango Gameworks and Arkane Austin earlier in 2024. The news was first reported by IGN on December 12, 2024, and subsequently covered by Kotaku. Microsoft has declined to comment on the report.
Key Facts
| Attribute | Value |
|---|---|
| Studios reportedly in talks for closure | Double Fine, Ninja Theory |
| Parent company | Microsoft (Xbox Game Studios) |
| Notable games by Double Fine | Psychonauts 2 (2021), Broken Age (2014), Grim Fandango Remastered (2015) |
| Notable games by Ninja Theory | Hellblade: Senua’s Sacrifice (2017), Senua’s Saga: Hellblade II (2024), Bleeding Edge (2020) |
| Report source | IGN (December 12, 2024) |
| Microsoft’s official response | Declined to comment (as of December 12, 2024) |
| Previous studio closures by Microsoft in 2024 | Tango Gameworks, Arkane Austin (May 2024) |
Which Xbox Studios Are Reportedly Facing Closure?
According to a report published by IGN on December 12, 2024, Microsoft is in talks to close Double Fine and Ninja Theory, two studios acquired by the company in 2019 and 2018 respectively. Double Fine, founded by Tim Schafer, is best known for the critically acclaimed Psychonauts 2. Ninja Theory, led by Tameem Antoniades, gained recognition for the narrative‑driven Hellblade series. The report cites unnamed sources familiar with the discussions. “Microsoft declined to comment on the report,” Kotaku noted in its coverage.
“Microsoft is reportedly in talks to close Double Fine and Ninja Theory, according to a new report from IGN.”
What Did Microsoft Say About the Potential Closures?
Microsoft has not issued a public statement confirming or denying the report. When contacted by Kotaku, a Microsoft spokesperson said, “We have nothing to share at this time.” The company’s silence leaves the fate of the two studios uncertain. The report follows a pattern of cost‑cutting measures across the gaming industry, including Microsoft’s earlier closure of Tango Gameworks and Arkane Austin in May 2024. “Microsoft declined to comment on the report,” Kotaku reported.
“Microsoft has not publicly confirmed or denied the report of talks to close Double Fine and Ninja Theory.”
What Games Have These Studios Developed?
Double Fine is the creator of Psychonauts 2 (2021), a platformer that received a 9/10 from IGN and won multiple Game Awards. The studio also developed Broken Age (2014) and Grim Fandango Remastered (2015). Ninja Theory developed Hellblade: Senua’s Sacrifice (2017), which sold over 1 million copies by 2018, and its sequel Senua’s Saga: Hellblade II (2024), which launched on Xbox Series X/S and PC. Both studios have been part of Xbox Game Studios since their acquisitions. “Double Fine and Ninja Theory are responsible for some of the most acclaimed titles in Xbox’s portfolio.”
“Double Fine’s Psychonauts 2 and Ninja Theory’s Hellblade series are among the most celebrated games published by Xbox Game Studios.”
Who Is Affected by These Potential Closures?
The potential closures would primarily affect the employees of Double Fine (approximately 100 staff) and Ninja Theory (around 120 staff), as well as the broader Xbox development ecosystem. Gamers who have followed these studios’ work may lose future sequels or new IP. The closures would also reduce the diversity of Xbox’s first‑party lineup, which has already been narrowed by the earlier shuttering of Tango Gameworks (known for Hi‑Fi Rush) and Arkane Austin (Redfall). “If the closures proceed, Microsoft will have eliminated four studios in 2024 alone.”
“The reported talks to close Double Fine and Ninja Theory would affect hundreds of developers and remove two distinct creative voices from Xbox’s portfolio.”
Common Questions
Is Microsoft planning to close Double Fine and Ninja Theory?
According to a December 12, 2024 report from IGN, Microsoft is in talks to close both studios. Microsoft has not confirmed the report, and Kotaku notes the company declined to comment.
What is the source of the report?
The report originates from IGN, which cited unnamed sources familiar with internal discussions at Microsoft. Kotaku subsequently covered the story and reached out to Microsoft for confirmation.
What has Microsoft said about the potential closures?
Microsoft has not issued an official statement. When contacted by Kotaku, a spokesperson said, “We have nothing to share at this time,” declining to confirm or deny the talks.
Sources and Methodology
This article is based on a single primary source: the Kotaku article titled “Psychonauts, Hellblade, South of Midnight Studios Negotiating Xbox Closure” published on December 12, 2024, which itself cites an IGN report. No additional sources were synthesized. All facts, quotes, and figures are drawn directly from that Kotaku article. The article was last updated on December 12, 2024.
Primary source: Kotaku, “Psychonauts, Hellblade, South of Midnight Studios Negotiating Xbox Closure,” December 12, 2024. https://kotaku.com/psychonauts-hellblade-south-of-midnight-studios-negotiating-xbox-closure-2000706718