‘An outcome that preserves our history’: Studios thank Xbox for allowing them to leave

Double Fine and Compulsion Games have thanked Xbox for allowing them to return to independence as part of Xbox’s significant restructuring plans.

On Monday, Xbox announced plans to cut thousands of jobs as part of what CEO Asha Sharma called “The most significant restructure in Xbox history”.

Although no studio closures or game cancellations were announced as part of the initial plans, Sharma confirmed that Xbox will let go of five of its development studios, either via sales or divestment.

Psychonauts studio Double Fine and South of Midnight creators Compulsion are the two studios being allowed to return to independence. As part of the agreement, both companies will retain their IPs and game catalogs and receive investment.

Sharma said that Xbox had made the decision after determining that it was “not the best home for every type of studio” after its business did not grow at the pace it expected following years of high-profile studio acquisitions.

Compulsion Games was acquired by Xbox in 2018, followed by Double Fine the following year.

Double Fine ‘thankful to everyone at Xbox’

Commenting on the news, Double Fine said it was “thankful to everyone at Xbox for seven great years together, and for working with us to reach an outcome which preserves our history and culture, and returns ownership of our games to us.”

It added: “To everyone who has reached out to us these past few weeks: Thank you so much for all your kind words, we’ve been deeply touched by all your messages. We will share more news soon on what comes next.”

Compulsion said it was “excited to continue building the distinctive games that define Compulsion while taking the next steps in our journey”.

It said: “We care about the craft of making games, the stories we tell, the players who experience them, and the assembled creators who put their heart and soul into doing something different.

“Today, we’re sharing that Compulsion Games will return to independent management following our time as part of Xbox. As part of this transition, we will retain the rights to Contrast, We Happy Few, and our award-winning South of Midnight.

“We’re grateful for the years we spent with Xbox, for the support they provided our team, and for the opportunity to bring these games to players around the world. As an independent studio, we’re excited to continue building the distinctive games that define Compulsion while taking the next steps in our journey.”

In addition to the two studios, Ninja Theory (Senua) and Undead Labs (State of Decay) have been sold, Xbox confirmed on Monday, but details on their buyers have not been disclosed because the deals have not yet been completed. Arkane is also in negotiations to leave Microsoft.