Xbox Shut Down Ninja Theory Less Than Two Weeks After Showing New Game

Xbox Shut Down Ninja Theory, Hellblade (2017), Ninja Theory, Steam
Credit: Xbox Shut Down Ninja Theory, Hellblade (2017), Ninja Theory, Steam

Xbox has been in the headlines for months now, with the new CEO, Asha Sharma, making amazing improvements, and now the unfortunate news of studio closures. The most recent news is that Xbox shut down Ninja Theory only two weeks after showing off their next game in the Hellblade series, Senua.

This comes quickly after news spread that Xbox shut down Compulsion Games, the studio behind the award-winning South of Midnight. Double Fine, known for Psychonauts 2 and Keeper, is another big company facing closure.

South of Midnight (2025), Xbox Game Studios, Steam
South of Midnight (2025), Xbox Game Studios, Steam

All three studios were acquired by Microsoft over a two-year period when Xbox was acquiring many studios. And in a recent report last week, Sharma talked about the “harsh realities” when trying to “navigate” to “reset the Xbox business.” The new CEO broke down her next steps, which involved potential layoffs and closures, as she said that Xbox has “overextended” itself over the last decade, admitting that they haven’t “adequately funded” the studios to “compete and win.”

The report was made on June 11, and since then, we’ve seen a few closures. And while it’s nice to see that Sharma is working hard to improve Xbox, layoffs and closures are never fun, especially confusing closures when a game was recently just announced.

During the Xbox Games Showcase on June 7, Ninja Theory announced the third game in the Hellblade series. Which makes it strange that less than two weeks later, they’re being closed.

According to a Bloomberg report, the studios will have an opportunity to buy back their independence from Microsoft, but even if they manage to, the studios will likely face significant layoffs. Aside from studios, it seems like there will be many layoffs internally as well, as reports say that employees have been given permission to seek new work.

Exclusives Still Matter, Halo, Google Commons
Exclusives Still Matter, Halo, Google Commons

Recently, it sounds like Xbox is focusing on bigger franchises, such as Elder Scrolls and Halo. This might also coincide with Xbox’s desire to bring back exclusives to consoles. While that sounds like a great strategy, it’s a shame that some of the impressive, newer stories are being shut down.

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Nikole Stewart is a writer and editor with three years of experience writing keen articles on topics such as ... More about Nikole Stewart
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