Xbox subsidiary studio Ninja Theory, the developers of the Hellblade series, is facing a round of layoffs as the studio faces a potential closure. Xbox previously stated that, while it was working on keeping Ninja Theory afloat, two deals it had lined up for the British studio reportedly fell through.
On September 22, Microsoft confirmed that it was laying off hundreds of employees across its global first-party development studios, including Halo Studios and other teams. Additionally, the company stated it was combining Turn 10 Studios and Playground Games into one development studio and placed it in charge of the Forza and Fable series moving forward. By comparison, former subsidiaries Double Fine and Compulsion Games became independent studios that retained their IPs, including Psychonauts and South of Midnight, respectively. Unfortunately, Ninja Theory has had no such luck in its endeavors.
Ninja Theory Lays Off Staff As Studio Closure Looms
NEW: Hellblade dev Ninja Theory has seemingly begun laying off employees after Xbox tried and failed to divest the UK studio. Last month, Microsoft said two separate agreements for the studio collapsed, meaning a closure was likely. It also, however, claimed it would “explore other paths forward.”
— Chris Kerr (@kerrblimey.bsky.social) 2026-10-05T12:52:08.853Z
Just four months after announcing Senua at the June 2026 Xbox Games Showcase, the studio behind the upcoming title now has fewer staff members on hand. As reported by journalist Chris Kerr on Bluesky, some former Ninja Theory staff members posted on their personal LinkedIn pages to confirm that they were either laid off or were at risk of redundancy. In the case of technical sound director Alessio Mellina, the latter said that his job was a case of the latter after nearly 12 years on the job. Gameplay programmer Katrin Mair stated that she was let go from her post after four years at the studio. Mair, who moved to the UK to work for Ninja Theory, said, “It’s incredibly sad knowing that we won’t get to finish what we were working on.”
Following the reveal of Senua, Xbox confirmed that it was showcasing the game in the hopes of attracting a potential buyer for Ninja Theory. As the third installment in the Hellblade saga, Senua is an Unreal Engine 5 title set in a purgatorial landscape. Compared to its predecessors, the environments of the upcoming title are more open than before, with a combat system that would allow players to fight multiple enemies at once. Players may also use stealth to avoid battles altogether in specific scenarios.
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As of this writing, the total number of laid-off staffers at Ninja Theory has not been publicly disclosed. During Microsoft’s September layoffs, Xbox executive Matt Booty stated that two separate deals it was conducting with potential buyers for Ninja Theory had collapsed. Although the Cambridge-based developer is still open for business as of this writing, Ninja Theory’s potential closure still looms overhead. Booty said that Microsoft was preparing consultation discussions with employees per British law, though he added that the company was “continuing to explore other paths forward” for the studio to stay open. A similar proposal is expected to be pitched to Lyon-based studio Arkane, the developers of the Dishonored series, by the end of 2026.
Senua is currently slated to launch on PS5, Xbox Series X/S, and PC as one of the biggest games in 2027. However, with Ninja Theory on the brink of closure, the Hellblade series has an uncertain future ahead. It remains to be seen what Microsoft’s next moves will be concerning the future of Ninja Theory and its remaining staff members.
- Released
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2027
- Publisher(s)
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Xbox Game Studios
- Franchise
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Hellblade
Source: VGC
