Xbox Moves to Close Ninja Theory After Failed Sales

Key points

• Microsoft chief content officer Matt Booty announced that two separate agreements to sell Ninja Theory fell through, leading to a proposed closure.
• The company will begin consultations with employees regarding the closure while continuing to explore other options.
• This move is part of a larger Xbox restructuring that includes 268 layoffs and the transfer of the Halo franchise to Activision.
• The studio's future is uncertain, particularly regarding the status of the newly announced game 'Senua', which was revealed at the Xbox showcase in June 2026.
• Other studios like Arkane are also facing potential closure, with consultations expected to continue through the end of the year.

Background

Ninja Theory, founded in 2000, is known for titles like Heavenly Sword and the Hellblade series. In 2026, Microsoft began a major restructuring of its gaming business, spinning out several smaller studios. While Double Fine, Compulsion Games, and Undead Labs were sold back to management, Ninja Theory's status remained uncertain. The studio was recently revealed to be working on a new Hellblade game called 'Senua' at the Xbox showcase in June 2026, raising questions about its future.

How outlets are covering it

Kotaku and GamesBeat both report on the failed sale agreements and the proposed closure of Ninja Theory. Kotaku emphasizes the studio's history and the recent reveal of 'Senua', while GamesBeat focuses on the broader Xbox restructuring and the uncertainty surrounding the studio's future. Both outlets agree that the closure is a result of the failed sale attempts and the broader corporate reset.

Why it matters

The potential closure of Ninja Theory highlights the challenges faced by smaller studios within large corporate structures. It also raises questions about the future of the Hellblade franchise and the impact of corporate restructuring on the gaming industry.

What to watch

Microsoft will begin consultations with employees regarding the proposed closure of Ninja Theory. The company will continue to explore other options, but the future of the studio and its games remains uncertain. The broader Xbox restructuring will continue, with 268 layoffs and the transfer of the Halo franchise to Activision.