Microsoft has indicated its intention to close down Ninja Theory, the studio behind the Hellblade series, after two separate acquisition or rescue attempts failed. The company has initiated a consultation process with the studio's employees in accordance with UK employment law.
Xbox Chief Content Officer Matt Booty stated in a blog post that while the company is proceeding with plans to close the studio, it remains open to an agreement that would save the company. Booty confirmed that "two separate agreements for Ninja Theory fell through," leading to the current consultation and exploration of "other paths forward."
The news follows Microsoft's announcement of Senua, the third game in the Hellblade series, at the Xbox Games Showcase in June. However, subsequent reports suggested that Microsoft had planned to close or spin off Ninja Theory around the time of the game's reveal, with the hope that the newly announced title would attract investor interest. This plan, according to Game File, has now evidently failed.
The future of Senua remains uncertain, with its release appearing increasingly unlikely unless a last-minute deal can be struck to save both the studio and the Hellblade franchise. The report notes that Microsoft has shown willingness to part with intellectual property to facilitate studio independence, citing examples like Double Fine and Compulsion Games, which successfully transitioned to independent entities with continued funding for new projects.
Ninja Theory's Hellblade games have faced commercial challenges. Microsoft is reportedly focusing on its major franchises, such as Minecraft, Halo, Fallout, and The Elder Scrolls, as part of a strategy to improve revenue and profitability for its Xbox business.