Xbox’s Closure of Ninja Theory Explained After Senua Reveal

This month has delivered a torrent of headlines, not only because of the No‑E3 event but also due to the sweeping overhaul underway at Xbox, which includes layoffs and the shuttering of entire teams. Among those affected is Ninja Theory, the studio behind the Hellblade saga, which has just announced its next title, Senua (2027). The move appears aimed at courting investors or buyers.

According to reporters such as Jason Schreier, at least Compulsion Games, Double Fine, and Ninja Theory are in talks to sever ties with Xbox and stave off closure. They are not the only teams at risk, but Bloomberg has confirmed these three as the most pressing.

Of the trio, Ninja Theory was the most surprising, especially given that it had just unveiled a new game slated for next year a few days earlier. Journalist Stephen Totilo outlined Microsoft’s strategy, which was already aware of the studio’s fate.

By the time the game was revealed, Microsoft had already plotted to shut down or dispose of the studio. The idea was that announcing a fresh title would help attract investor interest, Totilo told Game File, citing a source familiar with Microsoft’s plans. It remains unclear whether any Ninja Theory executives were involved in the decision to showcase the game at the Xbox Games Showcase or were kept in the dark.

Senua is set to distance itself from the first two Hellblade titles, yet it will retain the series’ rich storytelling and atmospheric depth while shifting its focus toward action‑adventure gameplay to grant players greater freedom.

Meanwhile, Xbox has yet to clarify its strategy for Xbox Game Studios following the recent departure of its head. Industry insiders anticipate that the division will realign its priorities to steer the business toward profitability.