Microsoft Apparently Already Knew It Would Be Closing Ninja Theory When It Announced Senua
Earlier this week, reports surfaced indicating that Microsoft was planning to either close or spin out several studios, including Ninja Theory, Compulsion Games, and Double Fine, as part of a broader round of layoffs and studio closures. According to a recent report, Microsoft had already decided to close Ninja Theory before the studio announced its new game, Senua, during the Xbox Games Showcase just ten days prior.
Stephen Totilo of Game File reported that Microsoft had "already planned to sunset or split" with Ninja Theory by the time the Senua trailer debuted. The idea was that the announcement of a new game would "draw investor interest." However, it's unclear whether Ninja Theory's leadership was aware of or involved in this plan.
The report comes after a recent interview with Xbox Wire, where they highlighted how Ninja Theory's Hellblade series has evolved into a broader philosophy of exploring new kinds of games. Ninja Theory studio head Dom Matthews also mentioned that the short time between Hellblade 2 and Senua was intentional. "It’s not about rushing something out the door—we would never do that," he said, emphasizing the studio’s commitment to quality over speed.
The Context of Microsoft’s Restructuring
The developments follow Xbox CEO Asha Sharma’s "reset" memo, which outlined the financial challenges facing the division. Sharma noted that Xbox has spent over $20 billion on ongoing investments, yet annual revenue has declined by nearly half a billion in the same period. "Going forward, this cannot continue," Sharma said, signaling a shift in strategy.
Soon after, Xbox Game Studios boss Craig Duncan stepped down, marking the beginning of a significant restructuring phase. This has led to uncertainty for studios like Ninja Theory, Double Fine, and Compulsion Games, which are reportedly in talks with Microsoft over potential buyouts. If these negotiations are successful, the studios may need investment to operate independently.
The Uncertain Future of Ninja Theory
Alongside these imminent changes, it remains unclear whether Ninja Theory would be allowed to take its Hellblade franchise with it if it were to go independent. When Microsoft closed Lionhead Studios, there was interest from potential investors, but those talks did not materialize because Microsoft was unwilling to let the Fable name go.
The future of the studios facing potential closure is still uncertain. While there is a glimmer of hope that Microsoft is aiming to find investors rather than shut them down entirely, it remains to be seen whether this strategy will be successful. For now, the gaming community waits to see how these developments unfold.
