Microsoft already planned Ninja Theory closure when it announced Senua, it’s claimed

June 17, 2026 - 06:33

Just under two weeks ago, Xbox's summer showcase featured a dramatic reveal of "Senua's Saga: Hellblade II," a sequel that had been in development for years. But behind the scenes, Microsoft had allegedly already made the decision to shut down the studio behind it, Ninja Theory. According to multiple sources familiar with the company's internal planning, the closure was set in motion before the public announcement of the game's final chapter.

The news has stunned many in the gaming industry, given that Ninja Theory is one of Microsoft's most critically acclaimed first-party studios. The Cambridge-based developer was acquired by Microsoft in 2018, shortly after the release of the original "Hellblade: Senua's Sacrifice," which won multiple awards for its depiction of mental health. The studio also worked on virtual reality projects and the experimental "Project: Mara."

Insiders claim that Microsoft's leadership had been evaluating the studio's financial performance and long-term viability for months. Despite the positive reception of the Hellblade sequel, the company reportedly saw the studio as too small to sustain large-scale AAA development under its current structure. The decision to close the studio was reportedly made weeks before the June showcase, meaning the Senua trailer was shown to the public while employees were unaware of their impending layoffs.

Microsoft has not confirmed the timeline of events, but the allegations have sparked debate about how the company handles its acquired studios. Critics argue that the move undermines trust in Xbox's promises of creative freedom and studio autonomy. For now, the future of the Hellblade franchise and the team's remaining projects remains uncertain.