Xbox is closing down Hellblade creator Ninja Theory

Microsoft's Xbox division is closing down Ninja Theory, the studio responsible for the Hellblade video game series, according to a source speaking to The Verge. Employees were informed of the decision during a call on Monday, with hopes that the studio might be acquired by another entity. This closure is part of broader restructuring within Xbox, which also involves the shutdown of Compulsion Games and layoffs at Double Fine, another studio under the Xbox umbrella. Ninja Theory's most recent release was Senua's Saga: Hellblade II, which launched on May 21, 2024, and received generally positive reviews. The studio was acquired by Microsoft in 2018. The reasons cited for these closures and layoffs include a shift in strategy and the need to focus resources on fewer projects. Approximately 30 employees at Compulsion Games, the studio behind the game We Happy Few, were also laid off. Double Fine, known for titles like Psychonauts 2, also experienced layoffs.