Xbox Has Closed More Studios Than PlayStation, Records Show

Following closures, mergers, and layoffs, Xbox is left with 12 studios compared to 23 five years ago, with the company warning that the current restructuring is not yet complete.

In recent months, PlayStation Studios has faced frequent criticism for closing internal teams, but Xbox has also significantly reduced its own structures over the past few years. Following another wave of layoffs, exactly 12 studios remain directly under the Xbox brand, nearly half as many as five years ago.

The situation would look even more severe without the nearly $70 billion acquisition of Activision Blizzard in 2023. Microsoft has closed studios, merged teams, and spun off some to third-party publishers or returned them to independence.

Even the teams that survived have suffered serious losses. Following massive layoffs, Halo Studios focuses primarily on community support, and new games in the series have been handed over to Activision. The cuts also affected id Software and ZeniMax Online. Ninja Theory faced the threat of closure.

At the same time, Microsoft states that the current restructuring is only about three-quarters complete, and the fate of Arkane Lyon remains uncertain. Therefore, the number of Xbox studios could shrink further before the end of 2026.

Studios within the Xbox ecosystem (as of September 2026):

• Activision Blizzard
• Arkane Lyon
• Bethesda
• The Coalition
• id Software
• inXile Entertainment
• MachineGames
• Mojang Studios
• Ninja Theory
• Playground Games
• World’s Edge
• ZeniMax Online

Studios that have closed, regained independence, or merged since 2021:

• Alpha Dog Games (closed by Microsoft, now resumed operation as an independent studio)
• Arkane Austin (closed)
• Compulsion Games (regained independence)
• Double Fine (regained independence)
• The Initiative (closed)
• Obsidian Entertainment (absorbed by Bethesda)
• Rare Games (transferred to Activision Blizzard)
• Roundhouse Studios (absorbed by ZeniMax Online)
• Tango Gameworks (closed, then acquired by Krafton)
• Undead Labs (regained independence)