XBOX, earthquake on the horizon: uncertain future for some studios, including Ninja Theory

The XBOX division is going through a phase of deep transformation, and the latest news confirms a particularly delicate period for the internal organization of Microsoft Gaming. After less than two years at the helm of XBOX Game Studios, Craig Duncan has decided to leave his position and will officially depart from the company during the week.

Duncan was appointed head of XBOX Game Studios in 2024, succeeding Alan Hartman after his retirement. Previously, he had led the Rare studio for over a decade, overseeing successful projects like Sea of Thieves and other productions developed during the Kinect era. During his tenure leading XBOX Game Studios, he coordinated numerous top-tier teams, including Halo Studios, Playground Games, Obsidian, Rare, Ninja Theory, Double Fine, Compulsion Games, The Coalition, and many others.

Pending the appointment of a successor, the studios currently under his supervision will report directly to Matt Booty, who was promoted in recent months to the role of Chief Content Officer as part of a broader reorganization of XBOX leadership. Alongside Duncan's departure, Louise O'Connor, Chief of Staff of XBOX Game Studios and a former member of Rare, will also leave Microsoft.

Is the future of some studios in the hands of XBOX? These changes come at a time of significant internal restructuring. Since February, the new head of the XBOX division, Asha Sharma, has initiated a series of strategic changes concerning the Game Pass model, brand communication, and plans related to the future hardware generation, internally identified as Project Helix. Simultaneously, several rumors indicate budget cuts and potential layoffs as part of a broad business revitalization plan.

However, the latest news concerns the fate of some first-party studios. According to a report by Bloomberg, teams like Double Fine, Ninja Theory, and Compulsion Games are reportedly discussing with Microsoft possible solutions to avoid closure. Among the options considered is the possibility of separating from XBOX and returning to operate as independent entities.

The situation appears particularly delicate for Ninja Theory. Sources cited by The Verge state that developers were informed of the concrete risk of closure if a potential interested buyer for the studio is not found. A surprising prospect, especially considering that the team recently announced a new chapter in the Senua saga. At the moment, there are no official confirmations regarding Microsoft's definitive plans.