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Microsoft Moves to Close Ninja Theory After Rescue Deals Collapse
ReMicrosoft Moves to Close Ninja Theory After Rescue Deals Collapse
Xbox has begun a legally required consultation with staff at the Hellblade developer after two separate agreements to save the Cambridge studio fell through, leaving the future of the Senua series in doubt.
Microsoft has signaled its intention to shut down Ninja Theory, the Cambridge-based studio behind the Hellblade series, after two separate deals to rescue the developer collapsed. The company has begun a formal consultation with employees on a proposed closure, a process required under UK employment law, while leaving the door open to a last-minute agreement.
«Unfortunately, two separate agreements for Ninja Theory fell through,» Xbox Chief Content Officer Matt Booty said in a blog post. «We will now begin consultation with employees on a proposed closure while continuing to explore other paths forward.» The language does not mean the studio is closing immediately. UK law requires employers to establish a consultation period of at least 30 days, during which measures to avoid redundancies are discussed and affected staff are given time to seek new jobs.
The decision caps a swift reversal for a studio that appeared secure just months ago. In June, at an Xbox Games Showcase event, Microsoft announced Senua, the third entry in the Hellblade series, with little public concern about either the game or the studio. That optimism was shattered by a «reset» memo from new Xbox CEO Asha Sharma, which pointed to mass layoffs and studio closures. By July, Ninja Theory was among the studios on the chopping block.
Fans reacted with confusion at how Microsoft could unveil a new Hellblade game and then, days later, tell the studio's staff it planned to shut the company down. Reporting suggests Microsoft intended to close or spin off Ninja Theory when it revealed Senua, calculating that the promise of a newly announced game would help draw investor interest in the studio. That plan has failed.
The future of Senua now looks increasingly uncertain unless a dramatic, eleventh-hour deal can be struck to save both the studio and the Hellblade franchise. Ninja Theory's Hellblade games have struggled commercially, and Microsoft is doubling down on its biggest franchises — including Minecraft, Halo, Fallout, and The Elder Scrolls — as it seeks to raise revenue and profitability across the Xbox business in the coming years.
There may still be a template for survival. Double Fine, the developer behind Psychonauts, and Compulsion, the studio behind South of Midnight, both navigated their way to independence, retaining their intellectual property and securing funding for new games. Microsoft, it appears, is willing to part with IP to help its studios out the door.
Ninja Theory was founded in March 2000 and has developed titles including Heavenly Sword, Enslaved: Odyssey to the West, DmC: Devil May Cry, and Bleeding Edge. It is now best known for the Hellblade series, with Senua's Saga: Hellblade 2 launching in 2024. A third entry had been planned for 2027, but that timeline is now in question.
The proposed closure is part of a broader restructuring at Xbox. Activision will develop the next Halo, Playground Games and Turn 10 Studios have merged, and Obsidian will operate under Bethesda Game Studios. The latest layoffs will see Microsoft cut at least 268 staff, following 1,600 job losses in July.
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