According to reports, Ninja Theory is also affected by the restructuring measures at Xbox.
A new trailer for the next game in the Hellblade series was released at Summer Game Fest. Senua—the title so far—is set to be released in 2027, but developer Ninja Theory may currently be busy with something other than its new game. According to The Verge, Xbox is planning to shut down the studio.
Is Ninja Theory on the verge of closure?
According tosources at The Verge, employees were informed of the closure on Monday. The studio is in negotiations with Xboxand hopes to find a buyer for Ninja Theory.
The future of the new Senua project is currently unclear.The first trailer had received positive feedback from players for its focus on more action than in the previous game.
Other Studios Affected
Areport by Bloombergconfirms the news about the closure of Ninja Theory and suggests thatCompulsion Games and Double Fineare also set to shut down.
Compulsion Games released the action-adventure gameSouth of Midnightlast year and, prior to that,We Happy Fewin 2018. Their debut title wasContrast, a puzzle-platformer released in 2013.
In contrast, Double Fine has built up a significantly larger portfolio since its founding in 2000. Its best-known titles include thePsychonauts games,Brütal Legend,and the remasters ofGrim FandangoandDay of the Tentacle.
According to Bloomberg, all three studios are in negotiations with Xbox and are said to have the option tofind a buyer or buy themselves outand continue as indie developers. However, either option is expected to result in the loss of many jobs.
Xbox Restructures
Since February 2026, Xbox has had a new CEO, Asha Sharma, who is radically restructuring Microsoft’s gaming division in some areas. This includes strict cost-cutting measures, a return to more Xbox-exclusive games, a rethinking of the hardware strategy, and—as recently announced by the new Xbox CEO—layoffs.
Experts estimate that up to 1,000 employees will have to leave Xbox after the end of the fiscal year on June 30. However, this has not been confirmed. You can learn more about the shakeup at Xbox in the article linked in the box above.
