Microsoft has showcased an intention to shut down Hellblade developer Ninja Theory after two separate deals have fallen through to sell the studio. In line with UK employment laws, a consultation has begun with the staff at the Cambridge-based studio. Microsoft has stated that they are working now to close the studio, but it remains open to the possibility of an agreement that could rescue the company.
Xbox Chief Matt Booty stated via a blog post today:
Unfortunately, two separate agreements for Ninja Theory fell through. We will now begin consultation with employees on a proposed closure while continuing to explore other paths forward.
In June, Microsoft showcased Senua, a third game in Ninja Theory’s Hellblade series, during the Xbox Games Showcase. At that time, there was little in the way of concern; Ninja Theory had previously stated plans to work on a third game and had signaled that the development of the game would not be as lengthy as the previous game, which took 5 years being partially affected by the COVID-19 pandemic.
What later came out was that Ninja Theory was not aware of its potential closure, and according to GameFile, Microsoft planned to use the announcement of a new game as a potential selling point for the studio. Asha Sharma, the new Xbox CEO, sent out the now-infamous “Reset” memo, signalling that the company would undergo massive layoffs, along with several studio closures. Clearly, the plans to sell Ninja Theory have not come to fruition.
Amid all of these cancellations and layoffs, Microsoft also announced that they have saved Hideo Kojima’s upcoming title, Physint, from cancellation by Sony after the project went over budget, becoming the producers on the title. Microsoft has also served as the producer on Kojima’s OD.
Remember to follow us on Twitter, Facebook, and Bluesky to keep up to date on everything we have going on!
