Ninja Theory on the Brink: How the Community is Reacting to Xbox's Restructuring

The massive Xbox restructuring wave reached a new, particularly bitter low this week: According to official statements from Xbox, two separate attempts to sell the British studio Ninja Theory have failed. Xbox Content Chief Matt Booty informed staff that they are now initiating a formal consultation regarding a potential closure, while also continuing to search for alternatives. Eurogamer has assessed the community's reactions to this news – and the mood is anything but conciliatory.

Will Ninja Theory really close now?

It's not entirely certain yet, even if it looks that way. Under British labor law, a consultation period with employees must be initiated before mass redundancies of this scale – which is exactly what Xbox has now started. Approximately 150 employees of the Hellblade studio Ninja Theory would be affected. Microsoft had already announced in June 2026 that it would part ways with Ninja Theory, Double Fine, Compulsion Games, and Undead Labs. While Double Fine and Compulsion continued as independent studios with their own IP, Ninja Theory was intended to be sold to new owners, including a budget for the already announced third Hellblade installment. According to Xbox, these sale negotiations have now failed twice, which is why closure is seriously on the table. The consultation phase usually lasts several weeks, so a last-minute rescue scenario is theoretically still possible, but the window is getting smaller.

The case is particularly heavy because Ninja Theory was actually one of the success stories among Xbox's first-party studios: Hellblade: Senua's Sacrifice (2017) is still considered a prime example of a small, creatively daring budget project with an award-winning portrayal of mental illness. Its sequel, Senua's Saga: Hellblade II, was released in 2024 to critical acclaim but reportedly fell short of commercial expectations – a circumstance many fans attribute to its simultaneous day-one launch on Xbox Game Pass. Just two years ago, Xbox Marketing Chief Aaron Greenberg publicly assured there were 'no plans whatsoever' to close the studio. The fact that this is now indeed looming further exacerbates the loss of trust.

How is the Community Reacting to the Xbox Restructuring?

Accordingly, the mood in forums and social networks is somber. Many comments accuse Xbox of presenting recent announcements and projects more as selling points for potential buyers than as genuine future plans – and if no buyer is found, then the studio simply gets closed. The parallel to Tango Gameworks, which was shut down in 2024 despite the acclaimed Hi-Fi Rush, is drawn repeatedly: commercial success alone no longer seems to be a job guarantee at Xbox. Our article on Xbox's supposedly already completed 3,200-job reduction shows that the current round of 268 additional layoffs is by no means the end of the line.

Beyond Ninja Theory, the restructuring remains turbulent: Rare is being organizationally moved under the umbrella of Activision, Obsidian is being assigned to Bethesda, and Playground Games and Turn 10 are being merged. According to Booty, they are 'roughly three-quarters' through the restructuring – which raises concerns among fans that it's not over yet. Our report on how Sea of Thieves fans fear for Rare's future illustrates the extent of this anxiety among other long-standing studios.

Should Ninja Theory indeed close, it would be the most severe single loss of this restructuring wave so far: a studio with creative renown, in the midst of producing an ongoing sequel. For players, this means, in the worst case, the end of the Hellblade series – and another warning sign of how little security even celebrated studios currently enjoy at Xbox.

Source: Eurogamer

What do you think: Should Microsoft save Ninja Theory, or is the closure understandable given the sales problems? Let us know in the comments!