Xbox is reportedly closing Ninja Theory, the Cambridge, England-based studio behind the Hellblade series, according to The Verge. Sources familiar with the matter said the studio’s staff were informed about the closure on Monday, just over a week after the studio appeared at the Xbox Games Showcase to announce Senua, a new entry in the franchise.
Part of a wider Xbox reset
The reported closure extends beyond Ninja Theory, with Bloomberg revealing that Double Fine, the San Francisco studio known for Psychonauts, and Montreal-based Compulsion Games, maker of South of Midnight, are also in active negotiations to spin off from Xbox. Employees at the affected studios have been told they can seek new work, though their status remains in limbo. Xbox Game Studios head Craig Duncan also left the company on Monday.
The move appears to be part of a broader restructuring under new Xbox CEO Asha Sharma, who stepped into the role following the departure of longtime Xbox head Phil Spencer earlier this year. Sharma is said to be prioritizing the biggest franchises as Microsoft looks to return to growth. The company has not commented on the reported closures.
A studio with a complicated history
Ninja Theory was acquired by Microsoft in 2018. Its last major release, Senua’s Saga: Hellblade II, launched in May 2024 and was praised for its visuals and audio design but drew criticism for its short runtime and limited gameplay. Like Double Fine and Compulsion, Ninja Theory made award-winning games that were not commercial hits, a pattern that appears to have weighed against it under the new Xbox leadership.
The timing is particularly jarring for Hellblade fans who watched Senua’s unveiling at the Xbox Games Showcase just days ago. Whether the game proceeds under a new owner or gets shelved remains unclear.