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October 25, 2026

Ninja Theory faces closure as Xbox cuts agreements collapse

Ninja Theory Faces Potential Closure Amid Xbox Layoffs

Ninja Theory, the acclaimed game developer behind the Hellblade series, is facing a possible closure. This follows the recent announcement of significant layoffs at Xbox, as detailed in a new Xbox Wire blog by head of content Matt Booty.

The process of consultation with employees regarding the proposed shutdown has been set in motion. This difficult decision comes after two separate agreements intended to secure Ninja Theory’s future fell through, as stated in Booty’s blog post. The studio, however, continues to look for alternative paths forward.

Shifting Circumstances

Initially, it seemed Ninja Theory would weather the storm of job and studio cuts experienced by Xbox earlier in July, supported by a reported, though unspecified, partnership. The situation has since changed, and uncertain times lie ahead, leaving the studio without ownership and struggling to sustain operations.

Uncertain Future for ‘Senua’

Ninja Theory had recently announced the development of “Senua,” a new and ambitious title in the Hellblade series, during an Xbox Games Showcase in June. However, within a month of this reveal, Microsoft began actively seeking a buyer for the studio. “Senua” was highlighted as a larger and more expansive sequel compared to its predecessors.

Community and Employee Support

Matt Booty emphasised the importance of supporting affected employees during this period of turmoil: “Today, our focus should be on supporting those affected and treating one another with care and respect,” he noted. In preparation for future challenges, Booty plans to engage with various studios over the following week, culminating in a reassessment of goals at the All-Xbox team town hall on October 6.

Known for their innovative titles and critical successes like Hellblade: Senua’s Sacrifice, Ninja Theory has been an influential figure in the gaming industry. Other notable releases from the studio include Disney Infinity: 3.0, Bleeding Edge, and Dexed.

Reporting based on coverage first published by eurogamer.net.