It’s yet another sad day in the games industry as Xbox’s continued gutting of its subsidiaries gets worse, with acclaimed action game studio Ninja Theory reportedly headed for the chopping block.
Xbox’s chief content officer and executive vice president Matt Booty took to the official Xbox website on September 22 to announce that the Hellblade studio will go forward with the proposed closure.
“Unfortunately, two separate agreements for Ninja Theory fell through,” Booty wrote. “We will now begin consultation with employees on a proposed closure while continuing to explore other paths forward.”
Although Booty seems to suggest there may be “other paths forward” for Ninja Theory, it appears the plan is to shutter the Heavenly Sword makers–maybe unless another buyer steps forward.
There was a buyer previously, as Xbox CEO Asha Sharma said in July 2026 that Ninja Theory–along with State of Decay 3 developer Undead Labs–had “entered terms to join new ownership with funding.” That purse-holder was unknown at the time, and now we may never know who they were, as the deal has fallen apart.
It’s worth noting, though, that the language Xbox is using here doesn’t explicitly mean Ninja Theory is closing right this second. Instead, the “consultation with employees” and “continuing to explore other paths forward” are likely in reference to UK law, which requires employers to establish at least a 30-day consultancy period. In that time period, measures to avoid redundancies are to be discussed while giving affected staff time to find new jobs.
This story is developing…
