- Xbox is closing down Ninja Theory, the studio behind the Hellblade series.
- Staffers were told on a call on Monday about the closure, but they are hoping the studio will find a buyer.
- The closure comes as several Xbox studios at Microsoft, including Compulsion Games and Double Fine, are in active negotiations about spinning off.
- The process may be further along at Ninja Theory, with reporting that Microsoft has already opted to close the studio.
- Compulsion Games is reportedly in negotiations with Microsoft over the studio’s fate, but the details of these negotiations have not been disclosed.
- Ninja Theory is officially shutting down just 8 days after showcasing a new game.
- Concerns arose that Xbox was planning another round of layoffs, after Sharma stated during a Bloomberg Tech conference that it was not in a healthy spot.
- Ninja Theory revealed Senua as a new game, with a 2027 release planned for the PS5.
- Xbox's business needed to be more profitable in the future, according to Xbox boss.
- Multiple Xbox studios are in negotiations to go independent in an attempt to avoid closure, sources say.
- Employees at several studios have been informed of the situation and given permission to seek new work but were told that the status of the studios is still in flux.
Xbox is shutting down Ninja Theory, the studio known for the acclaimed Hellblade series, as part of a broader trend affecting multiple Xbox studios. Reports indicate that Compulsion Games and others are also negotiating to spin off from Xbox Studios to avoid closure.13456810
Staff at Ninja Theory were informed of the closure during a call, with hopes that a buyer might emerge. “Many employees will likely lose their jobs as a result” of these changes, according to Bloomberg. The situation has prompted employees at several studios to seek new employment opportunities amid uncertainty about their futures.11
The closures and negotiations come after Xbox CEO Asha Sharma and chief content officer Matt Booty highlighted significant challenges facing the Xbox business, including an annual revenue decline of nearly half a billion in five years and a fourfold increase in hardware costs. They noted that the studio system was “overextended” and “not in a healthy spot”.7
Ninja Theory's closure follows the recent announcement of a new game, raising questions about Microsoft's strategy. “Wanting to close down Ninja Theory makes sense for the current state of Microsoft,” one source commented, reflecting the discontent surrounding the timing of the studio's fate.
As negotiations continue, the future of these studios remains uncertain, with many employees left in limbo.
“Xbox is shutting down Ninja Theory, the studio behind Hellblade, while Compulsion Games and others are also facing closure. This comes amid reports of multiple Xbox studios negotiating to go independent to avoid similar fates.”
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