Microsoft May Already Be Shutting Down More Gaming Studios

posted by Roy Schestowitz on Jun 15, 2026,
updated Jun 15, 2026

Bloomberg recently reported that Xbox will make massive layoffs across the company, including significant cuts to marketing and more. At the time, it was reported that the layoffs were expected to begin in July. It is possible that Compulsion Games would be shut down at that time.

It is not even July yet, but rumours about Compulsion Games were not baseless. They might be shutting down soon. This is discussed in several gaming-centric sites, e.g.:

That last one says:

Update: Studio leadership is currently in negotiations with Microsoft

We saw this before. They shut down studios, then members regroup and attempt to make a comeback. But the writings are on the wall: XBox is in a state of disarray. █

Xbox is undergoing a dramatic restructuring as it grapples with financial struggles and strategic missteps

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