Xbox closing – Ninja Theory, the studio behind the Hellblade series, is being closed by Xbox, staff were told on a Monday call, and workers are now hoping to find a buyer. The shutdown follows Xbox leaders’ warnings about a “reset,” while other Xbox-owned studios—including C
By Monday, the call was over—and for the people at Ninja Theory, the studio’s future looked like it had already been decided.
Xbox is closing down Ninja Theory, the studio behind the Hellblade series, a source told The Verge. Staffers were told about the closure during a call on Monday, and they are now hoping the studio can find a buyer rather than dissolve completely.
The move comes as Microsoft pushes deeper into what Xbox leadership has already framed as a necessary overhaul. Xbox’s CEO Asha Sharma and chief content officer Matt Booty warned last week of a “reset” at Xbox. pointing to several challenges facing the business. They said Xbox had “over extended” with its studio system. and they also cited that a hardware component crisis is significantly driving up prices.
Ninja Theory’s shutdown lands alongside a separate, unsettled story inside Microsoft’s game roster. The closure and the broader negotiations follow Xbox’s internal restructuring pressure. with “several” Xbox studios at Microsoft—including Compulsion Games and Double Fine—being described as in “active negotiations” about spinning off. The reporting also notes that Compulsion Games. mentioned earlier in Kotaku’s Monday coverage. was expected to be shut down. though an update said studio leadership was in “negotiations” with Microsoft.
That tension—between a planned reset and the fate of studios—has been playing out right alongside Xbox’s public announcements. Since taking over at Xbox in February. Sharma has made multiple major decisions. including locking down Gears of War: E-Day and Clockwork Revolution as Xbox console exclusives in an announcement at its Xbox Games Showcase just over a week ago.
At that same event, Microsoft revealed a new Hellblade game, Senua—and with Ninja Theory now set to close, its future with the studio change has become unclear.
Xbox didn’t immediately reply to a request for comment.
What’s hard to miss is the sequencing: warnings about being “over extended” and battling rising hardware costs are arriving at the same time as studio closures and negotiations over spin-offs. In the span of days. Xbox’s studio system is being reshaped from both directions—by shutting one door and trying to figure out what to do with others still standing.
Xbox Ninja Theory Hellblade Asha Sharma Matt Booty Compulsion Games Double Fine Gears of War E-Day Clockwork Revolution Senua studio shutdown gaming industry