Ninja Theory faces closure as Xbox sale talks fail, staff face redundancy

Developers at Ninja Theory, the studio behind the Hellblade series, are facing redundancy as Xbox moves the studio towards closure.

The step follows a second wave of cuts. Xbox and Ninja Theory have begun a consultation, the formal talks required in the United Kingdom before redundancies are confirmed.

Principal programmer Stefano Prosperi said the studio was facing closure with staff facing redundancy. Principal sound designer Daniele Galante said his own position was at risk after almost nine years at the studio. Their accounts were reported by Eurogamer.

Xbox chief operating officer Matt Booty confirmed that two separate sale-related agreements for Ninja Theory fell through. Xbox had attempted to transfer ownership of the studio to another company so it could continue work on Senua, a game revealed in June.

The deals fell through. Closure became the path that followed.

The move sits inside Xbox's wider "reset" restructuring, which involved 3,200 planned job cuts and several studio cuts. Double Fine became an independent developer during that restructuring, meaning it now operates outside Xbox while retaining its team and properties.

The pressure on the studios had been building for months. In June, Ninja Theory and Double Fine were reported to be under threat of closure as Xbox studios fought for survival, according to IGN. That report said layoffs were expected to come into effect at the end of Microsoft's financial year on 30 June.

July brought the scale of the programme into view. Microsoft's Xbox restructuring involved losing four game studios, according to Eurogamer. Separate reporting at the time said Xbox parted ways with Compulsion Games and Undead Labs as part of the same restructuring involving 3,200 job cuts, according to Game Developer.

September brought a further round. Xbox confirmed 268 more layoffs alongside further studio closures, according to Eurogamer. The October consultation at Ninja Theory follows that second wave.

For players, this concerns the team behind Hellblade and its current work on Senua. Staff have begun to bid farewell as layoffs start. The consultation will decide how many roles are lost and on what timetable.