Concerns regarding the future of Xbox-owned development studios continue to surface following Microsoft’s recent restructuring efforts, with Insider-Gaming’s Mike Straw claiming that both Arkane and Compulsion Games are among the teams reportedly worried about potential closures.
In a post on social media, Straw said he had been contacted by employees from both studios who expressed anxiety about their future. He wrote, “Two of the studios I’ve been told, including getting messages from employees at the locations who are ‘scared’, are Compulsion and Arkane.”
Straw later added that some of the individuals who spoke with him hold senior positions within the affected studios. According to him, these employees have indicated there is “real concern” internally that their teams could be impacted next by Microsoft’s ongoing changes. He further stated that employees had “overheard conversations about the future of the studios” despite public messaging suggesting otherwise.
The latest report follows comments from Obsidian Entertainment co-founder Chris Avellone, who recently claimed that Xbox studios previously believed to be insulated from layoffs are now facing uncertainty. According to Avellone, management at several first-party teams has reportedly informed staff that it is unclear how Microsoft’s business reset and restructuring plans may affect individual studios.
Compulsion Games, based in Montreal, is known for titles including Contrast, We Happy Few, and most recently South of Midnight. The studio joined Xbox Game Studios in 2018.
Arkane Lyon, meanwhile, remains one of Microsoft’s most acclaimed development teams, having created the Dishonored series and Deathloop. The French studio is currently developing Marvel’s Blade, a single-player action title announced in 2023.
While concerns appear to be growing among employees, there is currently no official indication that either Arkane Lyon or Compulsion Games is being shut down. Microsoft has yet to publicly address the latest claims.
