Xbox Reportedly Shutters Studio Just One Week After Revealing Major New Game

Xbox has reportedly shut down Ninja Theory, the studio behind the Hellblade games, just over a week after revealing its latest game.

Earlier this month, it was reported that Microsoft was planning a restructure of its internal gaming studios later in the year.

Xbox CEO Asha Sharma and chief content officer Matt Booty warned workers last week of a “reset” at Xbox, with more news to follow.

This week, Bloomberg’s Jason Schreier reported that studios within Xbox were preparing for closures, with Compulsion Games, Double Fine Productions, and Ninja Theory among those affected.

According to Bloomberg, these studios “are in active negotiations to spin off as they try to thwart closure”.

The Verge then corroborated this report, adding that Xbox is closing the studio, but is apparently searching for a buyer.

What made the news particularly surprising was that Ninja Theory had debuted a trailer for its upcoming game Senua just over a week ago at the Xbox Games Showcase 2026, in which the third game in the Hellblade series was announced.

The Verge adds that “Sharma has made many major decisions since taking over at Xbox in February, 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.”

Senua, Xbox Game Studios

Ninja Theory Revealed Senua Just Over A Week Ago

Aiming for a 2027 release, Senua takes a more action-adventure approach to the series which has otherwise been quite light on combat and exploration elements.

“A Celtic warrior is trapped between life and death in a fractured vision of purgatory. In an action‑adventure set in the Hellblade universe, Senua fights to reach the afterlife and reunite with those she loved and lost, battling forces that threaten all she believes in.”

Ninja Theory was founded in 2000, and quickly became known for games like Heavenly Sword, Enslaved: Odyssey to the West, and DmC: Devil May Cry in the late 2000s and early 2010s.

It restructured its business in 2013 following the release of the Xbox One and PS4, splintering off into smaller teams to work on different games. One game that came about as a result was Hellblade: Senua’s Sacrifice, born from Ninja Theory’s belief that there was “a middle ground between the low budget pure indie development and AAA [projects]”

Ninja Theory was then acquired by Microsoft in 2018 following the success of Hellblade: Senua’s Sacrifice.

It released Bleeding Edge in 2020 for PC and Xbox One, and then made a Hellblade sequel called Senua’s Saga: Hellblade II in 2024.

With reports that Ninja Theory has been marked for closure or to be spun off, this leaves the future of Senua in doubt, even if it did just get announced earlier this month.

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