So, I’m hearing some pretty worrying news about Xbox. Apparently, Craig Duncan – a big boss over at Xbox Game Studios – is leaving after only two years. And now rumors are flying that Microsoft might be thinking about closing down a couple of their game studios by the end of 2026. A source over at Insider Gaming says ‘at least two’ could be affected, which is definitely not what anyone wants to hear!
He added that one particular development would be surprising. In a later message, Straw explained that the issue wasn’t related to Obsidian or Rare, responding to questions he’d received. He’s currently gathering more information about how employees are feeling, and expects a clearer understanding of the situation to emerge in the coming weeks as decisions are made.
He stated that Xbox is considering all options, and just because certain game studios weren’t specifically mentioned doesn’t guarantee they won’t face potential layoffs.
Recent disappointing game launches – like Kiln, Keeper, South of Midnight, and Forza Motorsport – suggest that Double Fine Productions, Compulsion Games, and Turn 10 Studios could be shut down. However, it seems unlikely that Turn 10 will be affected, as they are currently working on the PlayStation 5 version of Forza Horizon 6 and may also be helping with Fable.
Despite positive reviews for games like Keeper, Double Fine’s recent releases haven’t been particularly successful. While South of Midnight received reasonably good reviews, it didn’t achieve strong sales even after becoming available on both PlayStation 5 and Nintendo Switch 2.
We’ll have to wait for more information, particularly since recent reports suggest potential layoffs starting in July. We’ll keep you updated.
Sources say Microsoft may close at least two of its Xbox game development studios before the year is over, and one potential closure would be very surprising.
— Mike Straw | Insider-Gaming.com (@mikestrawmedia.com) 2026-06-15T15:06:39.963Z
To those wondering, the recent changes weren’t related to Obsidian or Rare. I’m currently gathering information on how employees are feeling, and we should have a better understanding of the situation in the next few weeks as decisions are finalized. Right now, everything is being considered at Xbox.
— Mike Straw | Insider-Gaming.com (@mikestrawmedia.com) 2026-06-15T15:34:29.332Z
Read More
- Green Game Jam returns with 70 games teaming up to tackle the climate crisis
- PI PREDICTION. PI cryptocurrency
- Gold Rate Forecast
- USD HKD PREDICTION
- Brent Oil Forecast
- Black Clover Confirms Special Chapter After Manga Finale
- USD JPY PREDICTION
- USD AUD PREDICTION
- USD CHF PREDICTION
- EUR HKD PREDICTION
2026-06-15 19:11