Following Xbox’s publicly issued “reset” memo, it was clear that Microsoft’s gaming wing was gearing up for even more lay-offs and studio closures. As of right now, the reality of the situation is being told through leaks and reports. While Xbox has yet to make a statement, it appears that three studios are in negotiations regarding their future: Compulsion, Ninja Theory, and Double Fine. There is a very real chance that all three of these development studios will be shut down. There’s also a very real chance that they are not the only ones facing a fight for survival.
Many players are, understandably, not too familiar with the studios that make their favourite games. If you don’t follow the world of games closely, when there’s news of studio closures, the first questions are naturally “Which Xbox games are shutting down? Which Xbox games are cancelled?” That’s where this list comes in: we’ve made it crystal clear which games are being impacted by Xbox’s current business decisions. Take a look through, find your favourite game or franchise, and we’ll let you know how things are looking.
Xbox Game Studios
Age of Empires – SAFE
Microsoft’s classic real-time strategy series, Age of Empires, is currently developed by World’s Edge Studio. The developer’s current project, the Raiders of the North expansion for Age of Empires 4, was announced as part of June’s Xbox Games Showcase and is due to launch later this year. So far, there are no reports that suggest World’s Edge Studio is in danger of being shuttered.
Avowed – SAFE(ISH)
Fantasy RPG Avowed launched early 2025 to solid enough reviews but it failed to meet sales targets. While that can put studios in a dangerous position, developer Obsidian Entertainment reportedly still has plans for the world of Eora. That could mean a sequel to Avowed, or it could mean a return to Pillars of Eternity – the duology of isometric RPGs that first introduced the setting. While there’s no official statement to point us in the right direction, both are theoretically viable – Avowed’s design taps into widespread hunger for Elder Scrolls-like games, while a third Pillars of Eternity could prove exceptionally popular thanks to the surge of CRPG popularity following Baldur’s Gate 3.
Clockwork Revolution – SAFE
The fantastic-looking steampunk RPG, Clockwork Revolution, is being developed by inXile Entertainment, the studio that previously created Wasteland 3. Xbox recently announced that Clockwork Revolution will be an Xbox exclusive as part of the company’s re-commitment to console exclusives, and so it seems unlikely that a major piece of Xbox’s plan to please its existing community and build a dedicated customer base would be jettisoned. Currently, there are no reports that indicate inXile Entertainment is planned to be closed.
Fable – SAFE
The ambitious reboot of Fable is being crafted by a team at Playground Games. While it is a multi-platform game in development for Xbox, PC, and PS5, it is nonetheless a key part of Xbox’s plan of focusing on its core popular franchises. Fable was beloved in the 360 era, and Xbox will be banking on a lovingly-crafted reboot to sell well and earn fans. Playground Games seems to be in no danger, not least because it also develops another popular Xbox franchise…
Forza Horizon – SAFE
Playground Games is split into two development teams: one working on Fable, and the other dedicated to the Forza Horizon series. That latter team only just shipped Forza Horizon 6, and will now be hard at work keeping it updated and flush with new content. It’s also not unlikely that part of the Forza Horizon team will already be thinking beyond Horizon 6 to what lies in the franchise’s future. Horizon is a key pillar of Xbox, and while the distance between games is growing ever longer (it took five years to create FH6, compared to the three years it took to make FH5, and the two years all prior installments took) as of now, we’re expecting there to be a new game on the distant horizon, so to speak.
Forza Motorsport – CANCELLED
While the Forza Horizon series has gone from strength to strength over its almost 15-year lifespan, its parent franchise, Forza Motorsport, developed by Turn 10, fell into decline over the same period. Historically the two sides of Forza traded places, with the more arcade-like Horizon games arriving between installments of the hardcore driving sim Motorsport games. Following the lackluster launch of 2023’s Forza Motorsport, Turn 10 have since been assigned to aid Playground Games with the Horizon series, and Forza Motorsport as a franchise has ceased production.
Gears of War – SAFE
If Xbox’s brand colour wasn’t green, it’d probably be red – so synonymous is the blood-splattered Gears of War with Microsoft’s gaming division. While the series was originally created for the Xbox 360 by Epic Games, Gears is now developed by one of Xbox’s own studios, The Coalition. Its latest project is Gears of War: E-Day, set to launch this October. As announced at the recent Xbox Games Showcase, it will be an Xbox console exclusive, and thus marks a significant step in Xbox’s big plan: its mini experiment in multi-platform releases is (sort of) over, and E-Day will stay on Gears’ home turf. While Gears 4 and 5 don’t have the reputation of the original trilogy, the series is generally quite popular, and so The Coalition seems to be in a safe spot. Gears will continue.
Grounded 2 – SAFE
Currently in early access, Grounded 2 is an unusual project for developer Obsidian Entertainment. This team is best-known for its RPGs, having developed Fallout: New Vegas, Pillars of Eternity, and more recently The Outer Worlds 2 and Avowed. But while multiplayer survival isn’t a major part of the studio’s history, Grounded 2 has been a hit. Much like its predecessor, it’s a comparatively cheaper project than the heavy lifts Obsidian’s RPGs are. While there are questions around the developer’s other projects, Grounded 2 and Obsidian appear to be safe.
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