Ninja Theory developers are facing redundancy after two separate sale-related agreements for the Hellblade studio fell through, with the studio’s consultation process with Xbox now appearing to have resulted in layoffs. Eurogamer reported on Monday, October 5, that employees had shared news of job losses and positions at risk as part of Xbox’s wider restructuring; Ninja Theory’s closure, however, has not been confirmed.

The situation is the latest development in the Xbox studio reshuffle, which began with the company’s July reset and included 3,200 planned job cuts.

The Xbox logo. Two sale agreements fell through

Xbox had been working to transfer Ninja Theory to another company so the studio could continue work on Senua, a game revealed in June. That effort did not come together: Xbox COO Matt Booty said in a letter that two separate sale-related agreements had fallen through.

Xbox and Ninja Theory then began a consultation process as the studio moved toward possible closure. Booty also said Xbox would keep exploring other options, so the failed deals did not amount to a definitive announcement that the studio was shutting down.

Development What is confirmed Proposed sale Two sale-related agreements fell through. Staffing Developers have reported redundancies or positions at risk. Studio’s future Consultation is under way; closure is not confirmed. Developers report job losses and uncertainty

Sound designer Daniele Galante, gameplay programmer Katrin Mair, and principal programmer Stefano Prosperi were among the employees identified in the reports. Their LinkedIn posts described sadness about the situation, uncertainty over what comes next, and gratitude for the colleagues and work they had shared at Ninja Theory.

The reports do not establish the final number of affected staff. Some developers have lost their jobs, while others are at risk of losing them as Xbox’s reorganisation continues; the wider process has also left workers at other Xbox-owned studios concerned about further cuts.

Ninja Theory is known for the acclaimed Hellblade series, making the uncertainty more than a staffing story for its audience. Hellblade 2 received five stars from Eurogamer in 2024, which described it as triumphant, while the studio’s future and the path forward for Senua remain unresolved.

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