Microsoft moves to shutter Hellblade developer Ninja Theory

The decision follows a stark warning from Xbox leadership, including CEO Asha Sharma and chief content officer Matt Booty, regarding the company’s overextended studio network. Rising hardware costs and a shift in business strategy have forced a reset across the organization, putting multiple studios in a precarious position. Reports suggest that other teams, such as Compulsion Games and Double Fine, are currently engaged in negotiations to potentially spin off from the parent company.

Since assuming control in February, Sharma has moved to consolidate the Xbox portfolio, recently prioritizing high-profile exclusives like Gears of War: E-Day. This pivot casts doubt on the future of projects like the recently revealed Senua title, leaving both staff and fans waiting for clarity on the studio’s fate. Microsoft has yet to provide an official statement regarding the specifics of the closure.