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Xbox may shut down the studio that made Hellblade

Olivia Bennett by Olivia Bennett
September 23, 2026
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Xbox may shut down the studio that made Hellblade
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Xbox Announced a new phase of large-scale restructuring, which will involve laying off an additional 268 employees and reorganizing multiple internal studios and game departments. One of the most serious consequences of the next “reboot” is the fate of Ninja Theory – Author Hellblade: Senua’s Sacrifice and Senua’s Legend: Hellblade II. Microsoft has begun discussions with employees about the possibility of closing the studio after two failed attempts to find a new owner for the studio. However, a final decision on Ninja Theory’s liquidation has yet to be made.

ninja theory Founded in Cambridge in 2000, it has successfully released many famous action-adventure games over the years. The studio is famous for: “Eternal Sword”, “Slave to the West” and DmC: Devil May Crybut its main achievement later became the Hellblade series. The first Hellblade: Senua’s Sacrifice was released in 2017, and soon after its release it attracted the attention of Microsoft: Xbox acquired Ninja Theory in 2018. A sequel, Senua’s Legend: Hellblade II, is launching in 2024 and becomes one of the studio’s most technologically advanced games.

The future for developers is now uncertain. In a statement released by Xbox, Matt Booty, executive vice president and chief content officer of Xbox, said that two separate transactions to sell Ninja Theory failed. therefore Microsoft Initiate the procedures required by labor law to consult with employees regarding the potential closure of the studio. In the meantime, the company claims it’s continuing to consider other options, so it’s premature to talk about shutting down Ninja Theory.

The situation itself is part of a larger overhaul of Xbox. The company will cut 268 positions as part of the new phase halo studioother internal teams and management at Xbox Game Studios. Taking into account the steps taken since July, Microsoft believes that the previously announced restructuring plan is about three-quarters complete. Xbox initially planned to lay off about 3,200 people in fiscal 2027.

At the same time, Microsoft is changing the structure of its gaming division. The next mainline Halo game will now be produced by a dedicated team within Activision, while Halo Studios will retain a small team to support existing projects and the community. Rare и edge of the world Also controlled by Activision Blizzard. obsidianIn turn, it will now work within the structure at Bethesda, maintaining ongoing projects including Grounded and new games in the Fallout universe. Playground Games и Turn 10 Merged into a studio focused on the Forza and Fable series.

Meanwhile, some studios previously threatened with closure have been given the chance to continue working independently. Compulsion Games and Double Fine returned to their original management in August, taking back their intellectual property rights, game catalogs and funding for future projects. Undead Labs has also changed ownership and will continue to develop state of decay 3 – Xbox has separately confirmed that the game will be available on Game Pass on launch day.

Another studio whose future remains uncertain is Arkane. Xbox said discussions with developers are ongoing and could last until the end of the year. As a result, Ninja Theory remains between a possible closure and the search for new survival options – Microsoft has not announced an immediate liquidation of the company, but after two failed sales deals, the studio’s situation has become significantly more complicated.

It’s particularly noteworthy that Ninja Theory’s next project, Senua, ran into problems just a few months after it was demoed. The source material claims that we’re talking about a third game in the Hellblade series, but official Xbox news doesn’t specify the name of the project or its future fate. Therefore, it cannot yet be said that Senua has been cancelled: its existence and further development directly depend on whether it can find a way to save the studio or transfer the project to another team.

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