It seems another studio has broken free of Xbox and gone independent, following Double Fine and other cuts

Microsoft’s big ‘reset’ of Xbox has left major scars on the brand, laying off 3,200 people across many Xbox gaming studios, like id Software, Arkane, and ZeniMax, and causing a few developers to leave Xbox and go independent, like Double Fine Productions and Compulsion Games.

Now, we have recently discovered another studio affected by the layoffs called Alpha Dog Games, which has announced via the studio founder’s LinkedIn profile page that it has broken away from Microsoft and regained independence with a simple message saying “Independently owned, again”.

Alpha Dog Games is independent again pic.twitter.com/AIqqfD9GeoJuly 20, 2026

For those unaware, Alpha Dog Games was a mobile game developer that made the action-RPG Wraithborne and action-strategy game MonstroCity: Rampage before being acquired by Bethesda Softworks in 2019.

After Bethesda was acquired by Microsoft in 2021, Alpha Dog Games worked on a cute mobile game spin-off of DOOM called Mighty DOOM before being shut down by Microsoft, along with Arkane Austin and Tango Gameworks in 2024.

Alpha Dog Games quickly revived itself in 2025 after its founders regained control of the company. Following this most recent announcement, Alpha Dog Games is now an independent studio, free to make whatever games it wants without Microsoft’s oversight.

Windows Central’s take

After two weeks of non-stop depressing news of studios being gutted left and right (with Bethesda being hit the hardest, along with ZeniMax Online), it’s nice to hear one studio escaping the wrath of the Xbox ‘reset’ and regaining its independence in the process.

With this news, perhaps this is a sign that other Xbox Game Studios might be able to escape job cuts (or worse yet, closure) if they play their cards during negotiations.

I know I want Arkane Studios to hopefully survive this reset, despite its future looking uncertain, as I enjoyed their Dishonored and Prey games (despite me being terrible at stealth games), and I would hate to see the studio closed by Microsoft, especially before Arkane finishes making its upcoming Blade game.

What do you think? Do you think Alpha Dog Games’ independent departure from Microsoft, along with Double Fine Productions and Compulsion Games, will inspire other studios to follow suit? What do you think of the idea of bigger studios like Bethesda or Obsidian leaving Xbox Game Studios so they can be independently owned again?

If you have any thoughts, please let us know through the poll, the comments section, or our Reddit page.