Just hours after reports emerged that Compulsion Games and Arkane could be at risk as part of Xbox’s expected restructuring, Bloomberg’s Jason Schreier has added even more fuel to the fire.

According to Schreier, Compulsion Games is not the only studio currently facing an uncertain future. Sources speaking to Bloomberg claim that Double Fine and Ninja Theory are also in discussions with Microsoft as they attempt to secure their futures amid Xbox’s ongoing shakeup.

UPDATE: The Verge is claiming that Ninja Theory were told on Monday that the studio is being closed. The article also says they are in talks about spinning off.

Kotakua reported that Compulsion Games is in talks over a potential spin-off arrangement. Schreier says Double Fine and Ninja Theory are said to be engaged in similar discussions with Microsoft.

If accurate, the news paints a far more worrying picture thanearlier reports suggested. At that point, it seemed like maybe one studio was at risk. Now, though, Xbox’s leadership may be evaluating the future of multiple studios as Asha Sharma continues efforts to reshape the company following years of declining hardware sales, rising development costs and Microsoft’s growing focus on services and publishing.

Founded by industry veteran Tim Schafer, Double Fine is one of gaming’s most beloved independent studios, responsible for titles such as Psychonauts, Brütal Legend and Psychonauts 2. Since being acquired by Microsoft in 2019, the studio has largely been left to pursue smaller, creatively driven projects.

Ninja Theory, meanwhile, recently released Senua’s Saga: Hellblade II in 2024 and remains one of Xbox’s most critically acclaimed first-party developers. The Cambridge-based studio has built a reputation for blending cutting-edge visuals with highly cinematic storytelling, making it one of the more distinctive teams within Xbox’s portfolio.

Most importantly, Ninja Theory just revealed a brand new game at the Xbox Showcase last week. The game is titled Senua, and promises to focus more heavily on the gameplay rather than just being a cinematic walking-sim. It’s crazy to think Xbox might be considering shutting down a studio whose game it just featured.

Combined with the earlier reports surrounding Compulsion Games and Arkane Lyon, Schreier’s latest information suggests Xbox’s coming July restructuring attempt could be a devestating day for the industry.

For now, Microsoft has not publicly commented on the reports. Nothing is confirmed. But the reports are impossible to ignore, especially from people like Schreier who have impressive records.