Rumour: Journalist Suggests Two Xbox Studios Are 'At Risk Of Being Closed' In 2026

Update #2 []: Kotaku is also now reporting that Compulsion Games will be shut down.


Update #1 []:

As you can see below, the original posts have been deleted and replaced with a mention that the studios are Compulsion and Arkane.

Compulsion Games has released We Happy Few and South of Midnight in recent years, while Arkane has released Deathloop and Redfall, and is currently working on Marvel's Blade.

Here are the updated posts:


Original Story: Back on Thursday, we covered a couple of reports from Bloomberg and The Verge that suggested Xbox could be in line for some major job cuts soon, and that a studio closure or "changes to the lineup" could be involved too.

And now today, there's a rumour (and keep in mind that's all it is) that two Xbox studios are "at risk of being closed" in 2026, with this information coming from Insider Gaming reporter Mike Straw on social media:

This rumour has quickly racked up a ton of attention on social media (particularly on Reddit), with loads of Xbox fans speculating on which studios might be affected in a situation like this.

For what it's worth, Straw says it's not Obsidian or Rare that he's heard about:

We're going to avoid speculating too much here at Pure Xbox, as we don't want to see any studio closed regardless of whether they've been successful or not in recent times, and we're just crossing our fingers that none of the teams at Xbox Game Studios get cut over the next six months (or indeed, in 2027).

We'll obviously let you know if anything happens, but here's hoping it's a rumour that doesn't come to fruition.