Micosoft Planned to Shut Ninja Theory Before Senua Was Announced at Xbox Games Showcase: Report

Multiple Xbox studios are facing closure and are engaged in negotiations with Microsoft to spin off or find a new buyer, as per multiple reports this week. Hellblade 2 developer Ninja Theory, which recently revealed a new game titled Senua at Xbox Games Showcase, is among the studios holding discussions with the Xbox parent and is reportedly hoping to find a new buyer. According to new reporting, Microsoft's plans to part with the studio were in place before Senua was revealed.

The third entry in Ninja Theory's Hellblade series was announced as a multiplatform title at the Xbox Games Showcase on June 7. The studio showed gameplay from the title and confirmed it was coming to PC, PS5, and Xbox Series S/X in 2027. But according to Game File, by the time Senua was revealed, Microsoft had already decided to shut down Ninja Theory or part ways with the developer.

Citing a source familiar with the company's plans, the report said that Xbox went ahead with Senua's reveal trailer thinking the newly announced project would help Ninja Theory attract investors. It is, however, unclear, if the studio itself had any inkling of this plan.

Now, the fate of the project depends on whether Ninja Theory can spin off from Xbox and find a funding partner or a new buyer. No development on that front has been reported yet. Microsoft and Ninja Theory have not commented on the discussions about the studio's future.

Xbox Set to Begin Layoffs

Microsoft acquired Ninja Theory, a British developer founded in 2000, as part of a buying spree in 2018 that also saw the company purchase State of Decay developer Undead Labs, Forza Horizon maker Playground Games, and Compulsion Games, which would go on to make South of Midnight. As part of the Xbox studio setup, Ninja Theory released Bleeding Edge in 2020 and Hellblade II: Senua's Saga in 2024.

Earlier this week, Bloomberg reported that Ninja Theory, Compulsion Games, and Double Fine were facing closure and were in discussions with Xbox to spin off. Several other studios at Xbox could be shut down, as well.

Microsoft is said to be planning a major round of layoffs at its gaming division in July. Last week, Xbox CEO Asha Sharma underlined a need for a business reset at the company across content, hardware, and services. Sharma said Xbox's studios were over extended and the company needed to invest more into its biggest franchises.