- Xbox is reportedly closing down Ninja Theory just a week after announcing a new entry.
- The studio is in active negotiation alongside others to spin off and go independent.
- The spree of new closures also threatens Compulsion Games and multiple other teams.
Xbox has entered quite a tumultuous period as it explores various methods to undo years of damage. Some of these changes were appreciated, such as promises of a return to exclusives and a huge focus on players.
However, the brand is also about to experience a massive reorganization that threatens many of its award-winning studios. New reports suggest that Xbox is now closing down Ninja Theory just a week after they announced Senua at the Showcase event.
Why it matters: It appears that Xbox is about to undergo a huge resizing, which could result in multiple talented studios either closing down or going independent to survive. The gaming brand now wants to focus on a few of its biggest IPs.
The Verge reports its sources have confirmed that Ninja Theory is on the chopping block, corroborating Bloomberg’s earlier reporting today. The studio was informed about the closure in a call on Monday.
Ninja Theory is behind the popular Hellblade IP and 2013’s Devil May Cry. It’s unclear what will become of the team’s new project moving forward under Xbox.
Recent reports also revealed that Xbox is shuttering Compulsion Games and Arkane, studios behind South of Midnight and Dishonored. Meanwhile, the team behind Psychonauts, Double Fine, is also at risk of closing down.
These studios are in ‘active negotiations’ with Xbox to buy themselves back and go independent. Ninja Theory is also looking for a new buyer, but many people are still expected to lose jobs even if the studio is acquired by someone else.
All these studios have produced award-winning entries, even if they did not sell like hotcakes compared to some of Xbox’s biggest IPs. Therefore, teams that develop high-quality entries are not safe moving forward if they don’t sell as well as Xbox expects.
On a side note, Microsoft is also exploring spinning off Xbox as a separate entity or turning it into a wholly owned subsidiary. It may also seek investor partners to form a joint venture around Xbox.
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Shameer Sarfaraz has previously worked for eXputer as a Senior News Writer for several years. Now with Tech4Gamers, he loves to devoutly keep up with the latest gaming and entertainment industries. He has a Bachelor’s Degree in Computer Science and years of experience reporting on games. Besides his passion for breaking news stories, Shahmeer loves spending his leisure time farming away in Stardew Valley. VGC, IGN, GameSpot, Game Rant, TheGamer, GamingBolt, The Verge, NME, Metro, Dot Esports, GameByte, Kotaku Australia, PC Gamer, and more have cited his articles.
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