Hellblade Developer Ninja Theory Heading Towards Closure in New Wave of Xbox Cuts, as Two Separate Agreements Collapse
Microsoft said two separate sale agreements fell through, leaving Ninja Theory in consultation over a proposed closure.
- On September 22, Xbox Chief Content Officer Matt Booty announced that Microsoft has begun consultation for a "proposed closure" of Ninja Theory after two separate agreements to sell the studio fell through.
- Microsoft allegedly planned to close or spin off Ninja Theory when revealing a new Hellblade game in June, hoping the announcement would attract investor interest to save the studio. Clearly, that strategy failed.
- The 26-year-old studio, known for the Hellblade series, is entering consultation under UK employment law. While Microsoft is working to close the team, it remains open to an agreement to rescue the company.
- While Double Fine, Compulsion Games, and Undead Labs have been sold back to management, Ninja Theory remains in limbo. Arkane is also facing potential closure, with consultation expected through year-end.
- Xbox leadership will spend time with studios over the next week before the October 6 town hall, where the All-Xbox team will reflect on progress and look ahead to one of the strongest game lineups in history.
16 Articles
16 Articles
Hellblade developer Ninja Theory heading towards closure in new wave of Xbox cuts, as two separate agreements collapse
Ninja Theory - developer of the Hellblade series of games, Enslaved: Odyssey to the West, DmC: Devil May Cry, and Heavenly Sword - is entering consultation in preperation for the studio's closure as part of today's sweeping Xbox cuts and layoffs.
"I'm still blown away by the amount of talent": Hellblade devs Ninja Theory face closure after Microsoft fail to reach a deal with buyers
Earlier this year, Microsoft announced that they were trying to sell UK-based Hellblade creators Ninja Theory as part of their steady efforts to siphon larger, shinier doubloons from the Xbox gaming business by laying off thousands of people. Today, they are proposing to close Ninja Theory, having ultimately failed to reach an agreement with buyers, though they're still holding out hope of a happier outcome. The news comes as part of the latest …
As part of another wave of cuts at Xbox, Ninja Theory is entering a consultation process aimed at closing the studio. Surprisingly, however, a week earlier, Microsoft had renewed the Senua trademark. The news item "Ninja Theory closes for closure. Microsoft renews Senua trademark" was published by GRYOnline.pl on September 22, 2026.
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