Today, Microsoft announced another massive wave of layoffs. As part of this, Xbox CEO Asha Sharma shared a memo with team members and staff discussing the future of many of its various studios.
As explained in a memo shared with Kotaku on July 6, Double Fine Productions, the studio behind Psychonauts 2, as well as Compulsion Games, the team behind South of Midnight, will “transition” back to being independent studios as they were before being acquired by Microsoft. Meanwhile, Ninja Theory and Undead Labs have signed contracts to “join new ownership,” according to Sharma’s memo. Both studios will receive funding to complete and “grow” Senua and State of Decay 3. Meanwhile in France, Arkane, the studio behind the upcoming Blade game, has entered “required consultation with its Works Council” to begin looking at “potential strategic options.”
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