- Microsoft revealed last month that they couldn’t find any buyer for Ninja Theory.
- The Hellblade studio is now laying off employees as the eventual shut down nears.
- The company is already reportedly using gen AI in most development stages.
Last month, Microsoft went through yet another wave of its major restructuring that cost even more jobs. One of the most unfortunate news from that wave was that the company couldn’t find any potential buyers for the Hellblade studio.
They revealed that they are still looking for offers, but a new report indicates that layoffs at Ninja Theory have officially begun, and the studio is likely headed towards an imminent closure, which is rather unfortunate.
Why it matters: Despite its popular Hellblade series, fans kind of get why Xbox made the decision to shut down the studio. However, announcing Senua just before the announcement was a cruel move.
NEW: Hellblade dev Ninja Theory has seemingly begun laying off employees after Xbox tried and failed to divest the UK studio.Last month, Microsoft said two separate agreements for the studio collapsed, meaning a closure was likely. It also, however, claimed it would "explore other paths forward."
— Chris Kerr (@kerrblimey.bsky.social) 2026-10-05T12:52:08.853Z
Multiple Ninja Theory employees took to LinkedIn to announce they were either laid off or that their journey was coming to an end. First spotted by journalist Christopher Kerr, it seems the studio’s time is coming to an end.
Some of these employees had been at the studio for a decade, and it’s sad to see talent being laid off like this. However, with Xbox’s rigorous restructuring, someone had to bite the dust, and Ninja Theory was caught in it.
Despite the studio getting shut down, it seems that Xbox still wants to keep the Senua franchise alive. They previously merged studios and handed Halo to Activision, so they might do the same with Senua too.
What are your thoughts on Ninja Theory laying off employees amid fears of an eventual shut down? Let us know your opinions in the comments or join the discussion at the official Tech4Gamers Forum.
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News Reporter
Abdullah is an avid gamer who primarily plays single-player titles. If you can’t find him anywhere, he’ll probably be at his desk playing The Witcher 3 for the millionth time. When he isn’t playing games, he’s either reading or writing about them.
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