After careful consideration, I’ve made the difficult decision to reduce our team by approximately 3,200 throughout FY27. This will include approximately 1,600 role eliminations today, and in addition, four studios will leave XBOX to new management.
Compulsion Games and Double Fine Productions will return to management and transition to independent studios with their IP, catalog, and runway for their next games. Ninja Theory and Undead Labs have entered terms to join new ownership with funding to complete and grow Senua and State of Decay 3. In France, Arkane’s management is beginning required consultation with its Works Council to review potential strategic options.
It is remarkable that Microsoft owned Undead Labs for 9 years with 0 game releases and sold them off the year before their game comes out
That’s probably partly why they’re being sold off, unfortunately.
I admittedly have not played any of the State of Decay games, but is anyone expecting the third one to be a smash hit? That’s a long time to spend money on a studio to produce a game that might only sell modest numbers.