Ninja Theory is Closing Days After Revealing Senua at SGF 2026

Just days after Xbox generated some of its best showcase reception in years, the company is reportedly closing several of the studios that made it worth watching.

The Verge reported on June 15 that Ninja Theory, the studio behind both Hellblade: Senua's Sacrifice and Hellblade II, is being shut down by Xbox. Employees were informed of the decision on Monday, though the studio is reportedly still seeking a buyer who could prevent the closure from being finalized.

Ninja Theory revealed Senua, a third entry in the Hellblade universe set after the events of Hellblade II, at the Xbox Games Showcase on June 7. The game is targeting a 2027 launch. Whether it ever ships now depends entirely on whether someone steps in to acquire the studio before the doors close.

Multiple Xbox Studios are Shutting Down

The Ninja Theory news is part of a broader wave of closures reportedly hitting Xbox's studio portfolio simultaneously. Insider Gaming confirmed separately that Compulsion Games, the Montreal studio behind South of Midnight, is also facing shutdown. Later the same day, a further report surfaced indicating that Double Fine, Tim Schafer's studio responsible for Psychonauts, Brutal Legend, and Kiln, is also at risk of closure, with both Ninja Theory and Double Fine reportedly seeking deals with Xbox to avoid being shut down entirely.

All of the above studios were acquired by Microsoft as part of its aggressive expansion strategy across the previous generation. All of them are now shutting down as part of the reset Asha Sharma outlined in her June 10 memo, which warned of impending layoffs. All of this is happening on top of a hardware component crisis and over-expansion on studio acquisitions by Xbox. 

The most immediate is what happens to the games these studios were building. Senua is the most prominent example. It was positioned at the showcase as a meaningful next step for the Hellblade universe, a game with a clear creative vision and a named 2027 window. If Ninja Theory finds a buyer, the project presumably continues under new ownership. If it does not, the game is likely to get canceled. 

The IP itself would remain with Microsoft regardless of what happens to the studio. Xbox owns Hellblade and Senua. Whether it chooses to hand that IP to another internal studio or a third-party developer will become clearer as the situation resolves.