Ninja Theory is leaving the Xbox umbrella and will be sold to new owners. Microsoft has agreed to provide development funding for the studio's upcoming game 'Senua', which is announced for 2027.
On June 8, 2026, Ninja Theory announced 'Senua', a new action-adventure game set in the Hellblade world, scheduled for 2027 on PC, PlayStation 5, Xbox Series X|S, and Game Pass. The studio canceled its experimental horror project 'Project: Mara' and consolidated all 85 staff on 'Senua', the first time since 2013 that the entire studio has worked on a single project.
Days later, on June 15, multiple outlets reported that Ninja Theory staff were informed of the studio's closure, with hopes that a buyer could be found. On July 6, as part of a larger Xbox division restructuring, Microsoft confirmed that Ninja Theory would leave the Xbox umbrella and be sold to new owners. Microsoft also agreed to provide development funding for 'Senua'.
The studio's status is now tied to the sale process. The most recent announcement from July 10 reiterated that Ninja Theory and Undead Labs will go to new owners as part of a 3,200-layoff plan across the Xbox division. The studio's announced title 'Senua' continues to receive Microsoft funding, but the studio itself is no longer part of Xbox Game Studios.
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2d ago
Microsoft Gaming CEO Asha Sharma announced a "reset" of the business, with 3,200 layoffs planned through the 2027 fiscal year, starting with 1,600 immediate cuts. Four studios-Compulsion Games, Double Fine Productions, Ninja Theory, and Undead Labs-will leave the Xbox umbrella. Compulsion and Double Fine will become independent with their IPs; Ninja Theory and Undead Labs will go to new owners. Arkane France is in consultation. The company aims to reduce management layers and appoint a COO.
6d ago
On July 6, 2026, Microsoft laid off approximately 1,600 employees in its Xbox division, the largest workforce reduction in the division's history. The company plans to cut a total of 3,200 Xbox positions by the end of the current fiscal year. Xbox CEO Asha Sharma sent an internal memo describing the move as an "Xbox Reset," citing the division's profit margin being one-third to one-tenth of industry peers and slowed growth relative to rising costs. Four studios acquired by Microsoft in recent years will regain independence: Double Fine and Compulsion Games under their founders' leadership, and Ninja Theory and Undead Labs through sales. The memo stated that previously announced first-party games will not be canceled, and Microsoft agreed to provide development funding for Ninja Theory's "Senua" and Undead Labs' "State of Decay 3." Arkane Studios has begun labor-management consultations about its future. Employees across Bethesda Game Studios, ZeniMax Online Studios, and Obsidian Entertainment also reported layoffs, with some saying they received no prior warning. The reductions follow earlier Microsoft gaming layoffs of 1,900 in 2024 and over 6,000 in May 2025. The layoffs on July 6 represent half of the 3,200 planned; the remaining cuts are expected within the fiscal year.
Jun 16
Multiple outlets report that several studios under Xbox Game Studios are at risk of closure, with Ninja Theory, Compulsion Games, and Double Fine named as those facing potential shutdown or forced independence. According to The Verge, Ninja Theory staff were informed of the closure on June 15, 2026, and the studio hopes a buyer can be found. Bloomberg reports that Compulsion Games and Double Fine are in discussions to leave Xbox Game Studios. The reports follow the recent resignation of Xbox Game Studios head Craig Duncan and Chief of Staff Louise O'Connor, as reported by The Game Business. These moves come after Xbox CEO Asha Sharma announced a business reset earlier this year, which included plans for large-scale layoffs and budget cuts. The studios in question were all acquired by Microsoft between 2018 and 2019. Ninja Theory had just announced a new title, 'Senua', at the Xbox Games Showcase days before the reported closure. Microsoft has not officially commented on the reports.
Jun 7
During the Xbox Games Showcase 2026 on June 8, Ninja Theory and Xbox Game Studios announced Senua, a new action-adventure game set in the world of the Hellblade series. The game follows the Celtic warrior Senua as she navigates a purgatory-like realm between life and death, aiming to reunite with lost loved ones. Senua places a greater emphasis on combat than previous Hellblade titles, offering tactical choices in battle and the ability to dual-wield melee and ranged weapons. The map is roughly twice the size of Senua's Saga: Hellblade II, though the game remains linear rather than open-world. Senua is scheduled for release in 2027 on PC via Steam and Microsoft Store, PlayStation 5, and Xbox Series X|S, and will be available on Xbox and PC Game Pass from day one. The announcement also confirmed the cancellation of the experimental horror project Project: Mara, which was first revealed in 2020. Studio head Dom Matthews stated that all 85 staff members are now focused on Senua, marking the first time since 2013's DmC: Devil May Cry that the entire studio has worked on a single project.