Microsoft spins off four Xbox studios; Double Fine and Compulsion keep their IP

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Microsoft is separating four Xbox game studios — Compulsion Games, Double Fine Productions, Ninja Theory, and Undead Labs — as part of a broader restructuring. Xbox CEO Asha Sharma confirmed the move in an internal memo, outlining different paths for each studio. Double Fine and Compulsion will transition to fully independent studios, retaining ownership of their intellectual property, game catalogs, and funding for future projects. Ninja Theory and Undead Labs were not mentioned as receiving similar IP retention terms. Both Compulsion and Double Fine have issued separate statements addressing their transitions to independence.

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