Ninja Theory closure looms after Microsoft fails to find buyer for Hellblade studio
Ninja Theory, the British studio behind the Hellblade series, looks set to close after Microsoft was unable to find a buyer for the developer. Xbox executive Matt Booty confirmed that two separate deals to sell the studio had fallen through, resulting in what he described as a “proposed closure”, according to reporting by Rock Paper Shotgun.
The news comes barely three months after Ninja Theory unveiled Senua, a Celtic-set action sequel, with a heavily promoted trailer at Summer Game Fest in June. Four weeks after that reveal, the studio was put up for sale. Eleven weeks after that, Booty’s brief public statement confirmed that both attempts to find a new owner had failed.
Rock Paper Shotgun reports that the most widely circulated explanation for showcasing Senua so prominently, complete with polished ray-traced combat footage and a promised day-one Game Pass launch, was that Microsoft hoped the trailer would help attract a buyer for Ninja Theory by demonstrating the studio’s ongoing value. With both deals now collapsed, that reasoning has failed to produce any positive outcome for the developer or its staff.
Ninja Theory is a multiple BAFTA-winning studio best known for Hellblade: Senua’s Sacrifice and its sequel, Hellblade II. Should the closure proceed, it would mark the first Xbox-owned studio affected by Microsoft’s 2026 restructuring to shut down entirely, rather than being merged, downsized or repurposed.
The situation adds to a difficult period for Xbox’s first-party development arm, with hundreds of jobs already lost across the wider business this year and continued uncertainty over the future of Arkane Studios. Commentary from Rock Paper Shotgun has criticised Microsoft’s handling of the Ninja Theory situation, noting that the studio’s staff were left facing job losses shortly after appearing to promote an upcoming release to the public.
No further detail has been given publicly by Microsoft on the specifics of the two failed sale negotiations, nor on the future of any games in development at Ninja Theory, including Senua. As it stands, the studio’s fate remains tied to whatever decisions Microsoft makes in the coming weeks regarding the proposed closure.