Microsoft has begun consultation on a proposed Ninja Theory closure after two separate deals to save the Hellblade developer fell through, leaving the studio open to a last-minute rescue.
Xbox chief content officer Matt Booty said Microsoft will consult employees while continuing to explore other options. The statement confirms a sharp change from July, when Xbox said Ninja Theory had entered terms to join new ownership with funding to complete and grow Senua. It follows earlier reports that Ninja Theory was looking for a buyer and reports that several Xbox studios could close or spin off.
Ninja Theory closure follows failed rescue deals
The latest development was reported by IGN, which quoted Booty’s statement that “two separate agreements for Ninja Theory fell through”. The consultation process is part of UK employment law, and does not by itself mean every employee has been dismissed or that the studio cannot still find a buyer.
That possibility is narrower than it was in July. In its Xbox reset announcement, Microsoft said Ninja Theory and Undead Labs had entered terms to join new ownership. The announcement said the new owner would have funding to complete and grow Senua, the third game in the Hellblade series.
What happens to Senua now?
The Ninja Theory closure puts Senua’s future back in doubt. Xbox announced the game in June as a 2027 action-adventure with more combat, traversal and puzzle-solving than the earlier Hellblade titles. An official Xbox Wire interview said all 85 of Ninja Theory’s creatives were working on it, and confirmed releases for Xbox Series X|S, PC, cloud, Steam and PlayStation 5.
Microsoft has not said whether another studio will take over Senua, whether the project will be paused, or whether the game will be cancelled. The proposed closure also follows the cancellation of Project Mara, which Ninja Theory studio head Dom Matthews said had been stopped so the full team could work on Senua.
Ninja Theory joined Microsoft in 2018 after building its reputation with Heavenly Sword, Enslaved: Odyssey to the West, DmC: Devil May Cry and Hellblade: Senua’s Sacrifice. Its latest released game, Senua’s Saga: Hellblade II, arrived in 2024 and later expanded beyond Xbox platforms.
The consultation leaves two outcomes possible: a buyer could still take on the studio and its projects, or Microsoft could proceed with the closure and decide what happens to Senua separately. Neither outcome has been confirmed.
Will Senua still be released?
Microsoft has not confirmed whether Senua will continue, move to another studio or be cancelled. A buyer taking on Ninja Theory could still preserve the project.
What does consultation mean for Ninja Theory employees?
Consultation is the UK employment process that happens before a proposed redundancy or closure decision. It means the closure is being pursued, but the final outcome has not been stated as complete.
What happened to the Ninja Theory rescue deals?
Xbox chief content officer Matt Booty said two separate agreements fell through. Microsoft did not identify the prospective buyers or explain why either agreement collapsed.
