Microsoft has begun consultations with employees about a possible closure of Ninja Theory after two separate negotiations to sell the studio failed, the company said Monday, June 22. The move does not confirm a shutdown but formally places closure on the table while other options are evaluated.
Failed sale attempts prompted consultation process
According to Matt Booty, Microsoft’s head of content, the company pursued buyers for Ninja Theory but two distinct deals did not progress. As a result, Microsoft initiated a formal consultation process with staff that could lead to the studio’s closure if no alternative is found.
Ninja Theory was among several smaller studios Microsoft moved out of the Xbox structure amid a broad reorganization of its gaming division. While other studios—Double Fine, Compulsion Games and Undead Labs—were sold back to their respective management teams, Ninja Theory’s outcome remains unresolved.
Timing raises questions after new Hellblade reveal
The consultation notice comes roughly three months after Microsoft showcased Senua, the latest Hellblade title, during its midyear Xbox showcase. That announcement had already sparked questions because Microsoft was reportedly seeking options for the studio at the time.
A source previously cited by Game File said the Senua presentation may also have aimed to increase the franchise’s value ahead of potential sale discussions. Microsoft has not disclosed what would happen to Senua if Ninja Theory is ultimately closed.
Other studio consultations continue
Microsoft also indicated that Arkane faces potential closure, with related consultations expected to continue through the end of the year. The company says it remains assessing alternatives for the affected teams while carrying out the employee consultations.
Ninja Theory’s history and stakes
Founded in 2000, Ninja Theory developed titles including Heavenly Sword, Enslaved: Odyssey to the West and DmC: Devil May Cry. The studio released the first Hellblade in 2017, a game that blended Norse mythology, Celtic culture and psychological horror elements.
After 26 years in operation, Ninja Theory’s future now depends on whether Microsoft can identify a buyer or other solution during the consultation process.
