ninja theory is the biggest gaming issue for American followers as Microsoft is closing three game studios Double Fine Ninja Theory and Compulsion Games with Bloomberg reporting many other studios at risk including Playground Games Obsidian and Undead Labs while massive layoffs hit Xbox Group Blizzard Activision Bethesda in July 2026 but only Minecraft and Mojang Studio remain safe under new CEO Asha Sharma.
ninja theory: Microsoft Closing Three Game Studios
According to received information, studios are being given the option to buy back their independence (or find new places), but even in the best situation, massive layoffs will happen. And even though focus is on studios at risk of closing, in July across the entire Xbox Group, massive layoffs at Blizzard, Activision, and Bethesda are certain.
Playground Games is currently at the peak of success with ‘Forza Horizon 6’, but consider that this studio has been spending massively for nine years building ‘Fable’, and it may be difficult for that game to recover its costs. Nowhere is safe.
ninja theory: Undead Labs, Obsidian, Rare — At Risk
The ‘Undead Labs’ studio of ‘State of Decay’ has not released a single game since Microsoft bought it in 2018. Obsidian Entertainment is a studio that makes many games, but last year’s ‘Avowed’ and ‘The Outer Worlds 2’ failed. Rare’s big bet ‘Everwild’ was cancelled and they can’t permanently stay on ‘Sea of Thieves’.
In Microsoft’s disappointing and confused journey in gaming, it’s better to think of unimaginable things.
ninja theory: Only Minecraft Safe — Mojang Studio
Well, maybe one place is safe. Last time when this happened, a year ago — I say this as if this is a series of different incidents, not an ongoing series of destructive mismanagement — then I wrote about Microsoft’s terrible performance running game studios. After that, an Xbox representative sent me a mild letter making some counterarguments, noting that ‘Minecraft’ and ‘Mojang Studio’ have flourished under Microsoft ownership. I accepted this as true, and I wondered what is different about ‘Mojang’.
ninja theory: Minecraft — At Microsoft’s Business Core
There’s a possibility that Minecraft is more like enterprise software at the center of Microsoft’s business than other games Xbox publishes. It’s universal, almost like a utility; it needs careful management, but doesn’t require much creative risk. The credit for maintaining this game’s continuous importance and creative stability goes to players, creators making add-ons to sell on the game’s marketplace, and YouTube creators who create new characters, new gameplay styles, new stories and mythologies.
This is truly ‘Game as a Service’. This is software product type that Microsoft understands at organizational level and can help expand its capacity through educational programs. You know, like an operating system or word processor.
ninja theory: No Criticism of Minecraft
This is no criticism of Minecraft, which is undoubtedly one of the best games ever. But most video games are not like this. If you want an elevated perspective, it’s art; and if not, it’s entertainment products. In both ways, they take continuous supply of human imagination and creative risk and transform it into meaningful relationship with players, from which money is later made.
For some reason, this business model confuses Microsoft, even though its competitors Sony and Nintendo have been successfully and easily proven in this for many decades.
ninja theory: 2018-19 Acquisition Campaign — Microsoft Didn’t Know How to Make Successful
When Microsoft bought Compulsion, Double Fine, and Ninja Theory (and Inexile, Undead Labs, Playground, and Obsidian) in 2018-19, they didn’t know how to make this successful. When they bought Bethesda in 2021 or Activision Blizzard in 2023, they didn’t understand it either. This reckless acquisition campaign was an overcorrection of previous retreat from first-party development (which itself was overcorrection of previous mismanagement of Rare, Lionhead, and Bungie).
This was led by Xbox’s former CEO Phil Spencer, who was a true enthusiast and learned to recognize good games, but never understood how to blend art and business.
ninja theory: Xbox Purposes — Exclusive Games vs Game Pass
If the purpose was to get valuable exclusive games back for Xbox, then Double Fine was too small for that job and Activision was too big. If the purpose was to feed the Game Pass monster, then this was done carelessly without checking if this monster has appetite to keep all these studios. (It didn’t happen.)
When Xbox Series console failed, Game Pass growth stalled, and Microsoft’s reach expanded massively due to Activision deal, then Ninja Theory and Compulsion-like studios faced huge pressure to make ‘multi-platform’ (running on multiple platforms) successful games. But what they were bought foror what work they were capable of, that was definitely not this.
ninja theory: Games Performance Poor — Xbox Game Studios Leaders Had No Clue
Their games’ performance remained poor because Xbox Game Studios leaders only gave approval to those projects, but they had no clue what exactly to achieve from it.
Xbox should not close these studios now, because originally they shouldn’t have been bought at all. The amount their founders received will definitely be large, but if these studios remained independent without going under Xbox umbrella, they would be in better condition. Finally, Spencer’s ‘kindness’ role turned cruel.
ninja theory: Asha Sharma — Xbox’s New CEO
Now let’s consider Asha Sharma who is replacing them. As Xbox’s new CEO, she started working with great enthusiasm and new energy; she launched some programs that please fans and promised to wake up Xbox’s old ‘renegade’ attitude again. It’s funny to hear this.
Sharma is an extremely strategic person who doesn’t fall for emotions.
ninja theory: Impact on American Gaming Followers
ninja theory is the biggest question for American gaming followers, because Microsoft is closing three game studios, and Playground Games, Obsidian, Undead Labs are also at risk.
| Impact | Details |
|---|---|
| Closed Studios | Double Fine, Ninja Theory, Compulsion |
| At Risk Studios | Playground, Obsidian, Undead Labs |
| Layoffs | Massive, July 2026 |
| Safe Studios | Minecraft, Mojang |
| New CEO | Asha Sharma |
ninja theory: Microsoft Gaming Confusion — Key Issues
| Issue | Microsoft | Sony/Nintendo |
|---|---|---|
| Acquisition | Reckless, 2018-2023 | Successfully, many decades |
| Business Model | Confused | Successful |
| Art + Business | Can’t blend | Easy success |
| Studio Status | Closed, at risk | Safe |
ninja theory — 3 Studios Closed, Minecraft Safe, Asha Sharma New CEO
ninja theory is the biggest question for American gaming followers, and Microsoft is closing Double Fine, Ninja Theory, Compulsion Games, but Minecraft and Mojang Studio are safe. In July 2026, massive layoffs at Blizzard, Activision, Bethesda are certain.
American gaming followers, ninja theory means studio founders will get large amount, but studios would be better if they remained independent without Xbox umbrella. Phil Spencer’s ‘kindness’ role turned cruel, and Asha Sharma started working as Xbox’s new CEO with enthusiasm, but she is an extremely strategic person who doesn’t fall for emotions.
