Xbox reportedly closing Hellblade studio Ninja Theory amid spinoff talks
The Verge reported that staff were told Monday of the shutdown, while Bloomberg said other Xbox studios are discussing spinoffs.
By Maya Lindqvist · Senior Technology Correspondent
2 min read
Microsoft’s Xbox division is closing Ninja Theory, the studio behind the Hellblade games, according to The Verge, which cited a person familiar with the matter. The reported move adds pressure to an Xbox studio system already facing restructuring talks and questions about the future of several teams.
Ninja Theory employees were informed of the closure during a Monday call, The Verge reported. According to that report, staff members are hoping the studio can find a buyer rather than shut down outright.
Microsoft did not immediately respond to The Verge’s request for comment, the publication said.
Other Xbox studios are in talks
The Ninja Theory report came as Bloomberg reported that several Microsoft-owned Xbox studios are in active discussions about separating from the company. Bloomberg identified Compulsion Games and Double Fine as among the studios involved in those talks.
Kotaku reported earlier Monday that Microsoft planned to shut down Compulsion Games, the studio behind South of Midnight. Kotaku later updated its report to say Compulsion leadership was in negotiations with Microsoft, matching the broader picture of possible spinoffs described by Bloomberg.
The Verge said the studio closures and talks follow a warning last week from Xbox chief executive Asha Sharma and chief content officer Matt Booty about a reset at Xbox. In that message, according to The Verge, the executives pointed to several problems for the business, including an overextended studio system and a hardware component crisis that has pushed prices higher.
Recent Xbox decisions frame the cuts
Sharma has made several major calls since becoming Xbox chief executive in February, The Verge reported. Those moves include keeping Gears of War: E-Day and Clockwork Revolution as Xbox console exclusives, a position Microsoft announced during its Xbox Games Showcase a little more than a week ago.
Microsoft also used that showcase to reveal a new Hellblade game called Senua, according to The Verge. The publication said the game’s future is unclear in light of the reported Ninja Theory closure.
Ninja Theory is best known in recent years for the Hellblade series, including Hellblade II: Senua’s Sacrifice. The studio’s reported closure would remove one of Xbox’s recognized narrative-focused developers at a time when Microsoft is reassessing how many internal teams it can support.
Bloomberg’s report on possible spinoffs suggests Microsoft may be seeking alternatives to outright shutdowns for some studios. The Verge’s reporting on Ninja Theory, however, indicates that at least one team has already been told it is being closed unless a buyer emerges.
This story draws on original reporting from The Verge.