Earlier today, word broke that Microsoft is reportedly planning to close Compulsion Games--the studio behind South of Midnight, We Happy Few, and Contrast--as part of a larger round of layoffs and studio closures. Now, there's word that a handful of Xbox Studios' smaller developers are taking some steps to avoid that fate.

Bloomberg is reporting that Compulsion, Double Fine, Ninja Theory, and "several other studios" have started negotiations with Microsoft to spin off their companies from Xbox Studios and avert full studio closures. Potentially, this would give the studios a chance to buy out Microsoft's stake in their companies or allow them to find financial backers who could become the new owners.

However, that may not be enough to save every developer at the affected studios. Bloomberg notes that "many employees will likely lose their jobs as a result" of going independent. Consequently, employees at some of the studios have reportedly been cleared to begin looking for other work. It appears this process may be further along at Ninja Theory, with The Verge reporting Microsoft has already opted to close the studio.

The scope of the potential layoffs isn't clear, and there have even been reports that Microsoft is considering spinning off Xbox itself into a new standalone company. Microsoft CEO Satya Nadella recently stressed the need for the Xbox gaming division to pull its financial weight.

Ahead of any big changes to Xbox itself, Craig Duncan, the head of Xbox Game Studios, has left the company after a 15-year stint with Microsoft. Duncan's chief of staff, Louise O’Connor, is also leaving Xbox.

Filmmaker Curry Barker is on top of the world right now thanks to the success of his horror movie Obsession. It's made more than $220 million against a reported $750,000 budget, and everyone wants to know what he's going to do next.

He is making a new Texas Chainsaw Massacre movie, and plans to expand Obsession into possible sequels and a TV show, but what else?

A video game movie, perhaps.

He told Josh Horowitz on the Happy Sad Confused podcast that while he is not a big gamer himself, he would be open to making a video game movie one day. Asked if there was a specific game that he would jump at the chance to direct, if asked, he said, "Yeah, probably. I feel like video games are sometimes really good concepts for movies, and I'm like, 'Ah, man, I wish that was a movie.'"

"I'm not a huge gamer, so I don't know. But Five Nights at Freddy's ... I probably would have went a different direction with it. But that would have been something cool [for me to do]," he added.

Curry also talked about how he had dinner with Zach Cregger (Weapons, Barbarian) and he thinks Cregger is being really smart with his idea for Resident Evil and making a movie in the spirit of the games but not an adaptation of a specific title.

Barker and Cregger have had similar career trajectories in some ways, having both started out with sketch comedy (That's A Bad Idea for Barker and Whitest Kids 'U Know for Cregger) before transitioning to making horror/psychological thrillers.

https://www.youtube.com/watch?v=J61DU21Q_N4

Barker also revealed his own personal favorite video game, calling out Naughty Dog's Uncharted--though he did not single out a specific entry. That movie was already adapted for a film starring Tom Holland and Mark Wahlberg.

Another director with a breakout movie this year, Kane Parsons (Backrooms), said he is also interested in making a video game movie, and it could be an adaptation of Valve's Portal.

World of Warcraft developer Blizzard is seeking legal action against yet another WoW private server, accusing the creators of Ascension WoW of copyright infringement, racketeering, and having earned millions of dollars illegally. 

In a court document submitted on June 12 in California, Blizzard cited many of the same offenses it used against the creators of Turtle WoW in a lawsuit last year. Blizzard alleges the makers of Project Ascension have infringed on its WoW copyright on a "massive scale" by distributing illegal copies of the game, using copyrighted materials, and accepting donations, in effect operating an entire business built on the "large scale, egregious, and ongoing infringement" of Blizzard's intellectual property. 

"Through Project Ascension, Defendants have found a lucrative way to exploit and profit from the popularity of the WoW game experience," the document states.

Blizzard alleges the creators of Project Ascension are well aware of their illegal activities, and have taken "extraordinary steps" to conceal their identities and safeguard against takedown notices or court judgements. The document states Blizzard believes Project Ascension's servers are hosted by the Russia-based Aeza Group, an organization that, according to the US Department of the Treasury, is known for "enabling cybercriminals and technology theft" and was sanctioned by the US government in 2025. Blizzard notes that Project Ascension's choice to work with such a "criminal enterprise" signals "intent to engage in unlawful activity." 

https://www.youtube.com/watch?v=zt7ebNzc5zM

Unlike in its case against Turtle WoW, many of the named defendants in Blizzard's lawsuit against Project Ascension reside in the US, but have allegedly masked their involvement through multiple shell companies that have no offices or employees. These companies are used to hide assets in an effort to avoid US tax liability, Blizzard alleges. The lawsuit goes on to state Blizzard is "informed and believes" Project Ascension has earned the two main people behind the private server, Derek Powell and Bryan Thomas Mannion, millions of dollars.

As part of the lawsuit, Blizzard is seeking the handover of all copies and materials that infringe on Blizzard's IP (including the game's modified client), the shutdown of Project Ascension, monetary relief, and the full accounting of "any and all monies" collected in connection with Project Ascension. 

Project Ascension is widely seen as the last large private server still operating following Blizzard's takedown of Turtle WoW and Stormforge in April. According to its website, it offers multiple ways to play, including a "classless" version of WoW where players can mix and match abilities as well as a version with 21 "new" classes "inspired deeply by Warcraft lore."

The court sided with Blizzard in its action against Turtle WoW back in April, with the two parties soon after reaching a private settlement. A few weeks later, Stormforge announced it would soon shut down after receiving a cease and desist from Blizzard. 

Blizzard's recent actions against private servers have some fans wondering if a new version of WoW Classic is just around the corner. Prior to this year, the last time Blizzard shut down a high-profile WoW private server was Nostalrius back in 2016, only to announce WoW Classic a year later.

That has led to speculation Blizzard could be poised to unveil what fans call "Classic+" at BlizzCon in September--a version of original WoW that in theory would receive new content and changes without progressing through the game's various expansions. Blizzard has not yet officially announced what's next for WoW Classic, but did tease Classic players "have a lot to look forward to" during a 2026 State of Azeroth presentation. 

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