Ninja Theory Staff Begin Departures as Xbox Closure Process Advances

Key points

• Ninja Theory staff are being laid off after Xbox failed to sell the studio, confirming the closure process initiated in September.
• Employees, including gameplay programmer Katrin Mair and technical director Loong-Wei Ding, have posted on LinkedIn about their redundancy and the loss of the unfinished 'Senua' project.
• Microsoft filed a trademark for 'Senua' in September, suggesting it intends to retain the intellectual property despite the studio's shutdown.
• The closure is part of a broader Xbox restructuring that includes the transfer of the Halo franchise to Activision and significant job cuts across other studios.
• The exact number of affected employees is unclear, but the studio is in a formal consultation phase ahead of potential mass redundancies.

Background

Ninja Theory, acquired by Xbox in 2018, is best known for the 'Hellblade' series. In September 2026, Xbox announced the proposed closure of the studio after two separate sale agreements fell through. This move is part of a larger restructuring effort that includes the transfer of the Halo franchise to Activision and layoffs at other studios like Double Fine and Undead Labs. Microsoft filed a trademark for 'Senua' in September, indicating it may retain the rights to the franchise despite the studio's closure.

How outlets are covering it

GamesIndustry.biz and Kotaku both report on the immediate impact of the layoffs, citing employee posts on LinkedIn that express sadness over the unfinished 'Senua' game. Kotaku provides additional context on the broader Xbox restructuring, noting that other studios like Double Fine and Undead Labs have spun off as independent entities, while Ninja Theory faces closure. The Economic Times highlights the global trend of layoffs, mentioning Nike and airBaltic alongside Ninja Theory, but provides less detail on the specific circumstances of the studio's closure. All sources agree that the failed sale agreements are the primary reason for the layoffs, but they differ in their emphasis on the broader industry trends versus the specific impact on the studio and its employees.

Why it matters

The closure of Ninja Theory marks a significant shift in the Xbox gaming landscape, as the studio was a key developer for the 'Hellblade' series. The retention of the 'Senua' trademark by Microsoft suggests that the franchise may continue under a different developer, but the loss of the original team raises questions about the future of the series. The broader Xbox restructuring, including the transfer of the Halo franchise to Activision, indicates a significant shift in Microsoft's gaming strategy, potentially impacting the future of other studios and franchises.

What to watch

The formal consultation process with employees is expected to continue, with potential mass redundancies to follow. Microsoft may seek to reassign the 'Senua' project to another studio or developer, given its retention of the trademark. The broader Xbox restructuring is expected to continue, with potential impacts on other studios and franchises. The exact number of affected employees and the final outcome of the consultation process remain to be seen.