Former Xbox studios Double Fine and Compulsion will keep games after going indie

Microsoft is spinning off Compulsion Games, Double Fine Productions, Ninja Theory, and Undead Labs as part of an Xbox restructuring. Xbox CEO Asha Sharma said Double Fine and Compulsion will become independent again while keeping their IP, back catalogs, and funding runway for future games.

Letting studios retain ownership of their franchises suggests Microsoft is trying to reduce operating costs without fully erasing creative value. The move reflects a broader industry shift toward leaner portfolios and more independent studio models after years of acquisition-driven expansion.