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What first party studios do you predict will be shut down in 2026?

With a new year will come a new wave of layoffs as tech gets more into AI development. Which studios, specifically first party can you see getting axed next year? For me it's:
MS:
Compulsion
Double Fine
Ninja Theory

Sony:
Bend
MM
 
Sony should get some sort of tax credit for the charity they give to Media Molecule. No way they shut it down now after keeping their lights on for decades and asking nothing in return. To conglomerates, the developer names are like game IPs. They can always staff them up and down with autonomous international coders are the situations dictate. There's no real upside in killing off any of these IPs if there is any good will around them.
 
Arkane Lyon
rage GIF


I want my Dishonored 3
 
I think there's some confusion here about what gets first party studios shut down. It's not usually just for creating games for a nichè audience. It's for going over budget and/or creating games that end up in development hell for years.

Compulsion and Double Fine have both shipped games recently and both produce AA games for AA budgets. I doubt either are on the chopping block.
 
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I think there's some confusion here about what gets first party studios shut down. It's not usually just for creating games for a nichè audience. It's for going over budget and/or creating games that end up in development hell for years.

Compulsion and Double Fine have both shipped games recently and both produce AA games for AA budgets. I doubt either are on the chopping block.
Didn't Phil say AA and Tango were picked because there's were the farthest out?
 
Why would Sony shut down MM now, they haven't done jack shit for a decade and Sony is cool with it. But I do think Fairgame% will get its merciful death in 2026.

I think MS is going to shut down the studios OP mentioned as well as the one making the Blade game.
 
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Who is doing project dark?
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What about Turn 10?
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Tango gameworks?
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Arkane Austin?
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....
Well, I dunno... I'm sure Xbox's incredibly bright future is free of any studio closure. They are a well-oiled machine, firing on all cylinders, ready to dominate the PlayStation Store and the world!!!
 
Whoever made high guard.
High Guard is rightfully mocked because of where/how it was unveiled. The gameplay, however, is exactly what people who play competitive team based shooter games like.

Don't be surprised if it finds an audience.

My guess is Ghost Story Games shuts down shortly after Judas is released. That's assuming it comes out next year.
 
Just to play it safe:

Obsidian Entertainment
343 Industries
The Coalition
Compulsion Games
Double Fine Productions
inXile Entertainment
Mojang Studios
Ninja Theory
Playground Games
Rare
Turn 10 Studios
Undead Labs
World's Edge
Bethesda Game Studios
ZeniMax Online Studios
id Software
Arkane Studios (Lyon)
MachineGames
Blizzard Entertainment
Activision Blizzard's Infinity Ward
Activision Blizzard's Treyarch
Activision Blizzard's Sledgehammer Games
Activision Blizzard's Raven Software
Activision Blizzard's Beenox
Activision Blizzard's High Moon Studios
Activision Blizzard's Elsewhere Entertainment
King
 
Microsoft reaper Phil incoming in 2026. I don't expect anything else to fold but shit they own. Oh and whoever did vampire masquerade 2.
 
I don't know how Media Molecule stays around. I couldn't get into LBP and Dreams seemed so poorly marketed on Sony's side that it seems they were obviously being positioned as the go-to sacrificial studio.

I hope no studios under MS go under. Especially Compulsion and Ninja Theory - South of Midnight is my biggest surprise of 2025 and Hellblade was such a unique experience I know I want to see what they come up with next. Double Fine, it sucks they received no marketing for Keeper but I hope it too is a sign they're free from scrutiny, because Psychonauts 2 was such a phenomenal game
 
Microsoft is playing Battle Royale with their studios so who knows what milestones they are using as a way to decide to who kill next year bur we will for sure see some
 
Bethesda and whoever is wasting money making that ugly Fable.
Nah, Playground Games has FH6 on the docket too, they'll be fine.

Wouldn't be surprised to see Fable cancelled though. Zero showing at TGA after being in dev for so long is not a good sign.
 
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Bend is probably on the way out... because grrrr white bikers amaright?

Days gone 2 would've made bank

On Microsofts end I see ninja theory going, one of the cod studios is going to disappear also.

Ubisoft will axe alot of their international support studios.
 
I can see Compulsion and Double Fine getting the axe from MS if I'm guessing.

On PS side I wouldn't be surprised to see in 2026 an announcement that Fairgames was cancelled and Haven studios shut down.
 
I don't think any AI could develop a worde game than Bethesda, so I'd like to see Todd Howard getting replaced by someone who knows how to do games properly.
 
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