Xbox Moves Toward Closing Hellblade Studio Ninja Theory

Microsoft initiated consultation with employees regarding a potential studio closure after multiple acquisition attempts failed.

Sep 22, 2026
Industry & Business
Xbox Moves Toward Closing Hellblade Studio Ninja Theory

Microsoft is beginning consultations with employees about a potential closure of Ninja Theory, the studio behind the upcoming game Senua, which was revealed at the Xbox Games Showcase in June. The decision follows two unsuccessful attempts to find a buyer for the development team.

"Unfortunately, two separate agreements for Ninja Theory fell through," wrote Matt Booty, Microsoft's chief content officer, in a blog post on September 22. "We will now begin consultation with employees on a proposed closure while continuing to explore other paths forward."

Ninja Theory is one of four smaller Xbox Game Studios teams that Microsoft has restructured this year. While Double Fine, Compulsion Games, and Undead Labs have been sold back to their management, Ninja Theory's future remains uncertain. Arkane, which was developing a Marvel Blade game, is also facing a potential closure, with consultations ongoing and expected to conclude by the end of the year. A sale of Ninja Theory remains a possibility, though it is described as sounding less likely.

Sources