Massive Xbox Studio Closures Loom | Bungie Faces 50% Layoffs from Sony

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This week on The Trophy Room, we discuss reports that several Xbox studios—including Ninja Theory, Compulsion Games, and Double Fine—could be facing closure, restructuring, or independence as Microsoft continues to reshape its gaming business. We break down what these reports could mean for the future of Xbox Game Studios, Hellblade, South of Midnight, Psychonauts, and the broader Xbox ecosystem.

We also dive into troubling reports surrounding Bungie, as the PlayStation-owned studio could reportedly lose up to 50% of its workforce following the conclusion of Destiny 2's story and Marathon's underwhelming launch performance. What does this mean for Bungie's future under Sony? Is Destiny 3 truly off the table? And can Marathon recover?

Plus, we discuss Housemarque's future after Saros, why the studio sees itself following a path similar to FromSoftware, and what PlayStation fans can expect from one of Sony's fastest-growing first-party teams.

Join us as we break down the biggest gaming industry stories of the week, the future of Xbox, Bungie, PlayStation Studios, and the state of the games business in 2026.