Microsoft Planned Closure of Ninja Theory Before Senua’s Reveal – Rumor

Recent reports suggested Microsoft was going to shut down Ninja Theory, the studio behind the game Hellblade. However, according to Stephen Totilo of Game File, Microsoft had actually made this decision before Ninja Theory revealed its new game, Senua, earlier this month. Totilo reports the game’s trailer was released as a way to attract investors who might be interested in buying the studio from Microsoft.

The report mentions possible plans, but it’s currently unknown if anyone in Ninja Theory’s leadership team knew about them.

Recent reports suggest that Ninja Theory, Double Fine, and Compulsion Games are in talks with Microsoft about becoming independent studios instead of shutting down. However, even if these talks succeed, significant job cuts are still expected at these studios.

According to recent reports from Insider Gaming’s Mike Straw, Xbox plans to close at least two of its game development studios before the end of the year. Straw mentioned that one of these closures will likely be unexpected.

To clarify, this wasn’t related to Obsidian or Rare – I know some people were wondering. Right now, I’m gathering information about how employees are feeling. We should have a better understanding of the situation in the next few weeks as decisions are made.

Following the end of Microsoft’s financial year on June 30th, reports suggest Xbox is considering layoffs and closing some of its development studios. This appears to be part of a plan led by Xbox CEO Asha Sharma to address recent financial losses. Sharma and CCO Matt Booty recently acknowledged these challenges, noting a 3% decrease in profitability over the past year.

We expect to finish the year with an accountability margin of around 3%, which is lower than last year. Over the past five years, we’ve invested more than $20 billion in our games, platform, and hardware, but our yearly revenue has decreased by almost half a billion dollars. This trend isn’t sustainable, and we need to change course.

I just heard some surprising news – Craig Duncan, who leads Xbox Game Studios, and Louise O’Connor, his chief of staff, are leaving their positions. Apparently, Duncan sent an email to everyone saying he’s proud of the last 20 months and all the successful game launches they had during his time there. It sounds like they really helped the company do well!

Even with worries about studios closing and job cuts, Xbox’s head of strategy, Matthew Ball, insists the company still intends to launch more games available only on Xbox.

The rumors are untrue. Both Gears of War: E-Day and Clockwork Revolution will remain exclusive titles, and there are no plans to change that.

To understand potential job cuts at Xbox, it’s helpful to know that profits from popular games have been used to cover losses on less successful ones – even some that never launched.

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2026-06-17 15:42