- Xbox may officially shut down Ninja Theory as part of its ongoing "XBOX Reset" restructuring.
- According to Xbox VP Matt Booty, two separate deals to sell off Ninja Theory fell through over the summer.
- He stated that Xbox will now "begin consultation with [Ninja Theory] employees" and explore "other paths forward" for the Hellblade studio.
Xbox may shut down Ninja Theory, the developer behind the Hellblade series and the upcoming Senua in 2027, after negotiations fell through. Previously, CEO Asha Sharma announced that the company would part ways with four studios as part of the “XBOX Reset” in July, from which Double Fine and Compulsion Games turned independent.
However, Xbox executive VP Matt Booty confirmed in a separate Xbox Reset blog that two deals to sell Ninja Theory fell through over the summer, which might lead to the studio’s shutdown. “Unfortunately, two separate agreements for Ninja Theory fell through,” explained Booty in the blog. Here’s the full official statement from the Xbox CCO:
We will now begin consultation with employees on a proposed closure while continuing to explore other paths forward.
Since Booty states it as a “proposed closure”, there’s a small chance that Ninja Theory goes independent and escapes Xbox’s shutdown hammer. However, things are looking pretty bleak for the beloved studio. Like Ninja Theory, Xbox is currently consulting on Arkane’s future and the fate of Marvel’s Blade.
The studio’s next game, Senua, is still on track for a 2027 release. However, with Xbox proposing a Ninja Theory shutdown, it’s increasingly likely that the third Hellblade game will be the final entry in the saga across all platforms.
A week after the Xbox Games Showcase 2026, reports surfaced that Ninja Theory was on the chopping block, and those reports now appear to be coming true.
Matt Booty further stated that he’ll now spend time with the studios affected by the “XBOX Reset”, and that “At our October 6 town hall, we will come together as an ALL-XBOX team to reflect on our progress”.
So, you can expect to find out Ninja Theory’s fate on October 6, 2026. That said, what do you think about Xbox likely shutting down Ninja Theory? Tell us in the comments section below.
