Microsoft has announced plans to close Ninja Theory, the UK-based studio behind the Hellblade series, following the failure of multiple attempts to find new owners. This development is part of broader restructuring and layoffs within Xbox, which have seen 268 employees affected and other studios merged.
In July, Xbox stated that Ninja Theory, alongside Undead Labs, had entered into agreements for new ownership to ensure the completion and growth of their existing projects. While Undead Labs has reportedly been sold, Microsoft confirmed that two separate deals for Ninja Theory did not materialize. "We will now begin consultation with employees on a proposed closure while continuing to explore other paths forward," stated Xbox chief creative officer Matt Booty in a memo.
Ninja Theory, originally founded as Just Add Monsters Limited in 2000, has a history of navigating challenging periods. After Argonaut Games, their initial publisher, went bankrupt, the studio secured its independence. Their early work included the original Xbox title Kung Fu Chaos and, later, the PlayStation 3 game Heavenly Sword, which featured Andy Serkis. The studio gained wider recognition with Enslaved: Odyssey to the West, a collaboration with Alex Garland, and later with the reboot DmC: Devil May Cry for Capcom.
Their most prominent work in recent years has been the Hellblade series, beginning with Hellblade: Senua's Sacrifice in 2017, which explored themes of psychosis. Microsoft acquired Ninja Theory in 2018. The studio released Senua's Saga: Hellblade II earlier this year, which received mixed reviews, and announced development on a third Senua game shortly before Microsoft began seeking buyers for the studio. Reports suggest the new game announcement was intended to attract potential acquirers.
Current and former Ninja Theory employees have expressed their reactions to the news. Robynne Austin, a Hellblade motion capture artist, noted the "interesting" timing of the announcements as she declared herself open for work. Former producer Chris Rowe described himself as "devastated," recalling his positive experiences at the studio and expressing admiration for the team's talent and dedication, particularly in advancing visual and performance capture technology with the Senua series. He also lamented the potential loss of opportunities for the studio to develop a broader range of action-adventure games. Microsoft has indicated it is continuing to explore other options for the studio's future.