The future of Xbox’s one of the most celebrated first-party studios is suddenly in doubt. Reports have surfaced online about Xbox shutting down Ninja Theory. This raises some serious questions about Xbox’s long-term strategy and the future of the newly announced game, Senua. While Microsoft has not officially confirmed the move, the news has sparked intense discussion in the gaming community.

Xbox is Axing Hellblade Studio Ninja Theory Among Other Layoffs

Just days after Ninja Theory unveiled its next major title, Senua, during the Xbox Games Showcase, multiple reports, including some from Bloomberg, emerged. These stated that the studio is among several Xbox-owned developers who are facing a potential closure as Microsoft looks to cut costs and restructure its gaming business.

Ninja Theory had recently shared fresh details about Senua, a new standalone project that expands upon the world of the Hellblade series. Development was said to be ongoing, and the team focused on delivering a broader journey while maintaining the core storytelling feature and providing an intense action-adventure experience. However, the latest reports suggest that Xbox shutting down Ninja Theory might become a reality.

The rumored closure of Ninja Theory appears to be a part of a larger plan to restructure business within the gaming division of Microsoft. Some recent reports also suggested that Xbox planned massive layoffs after the official announcement of Asha Sharma’s ‘Xbox Reset‘.

What’s worse is that Ninja Theory isn’t the only studio that’s affected right now. Some recent reports indicate that the studio leaders at Double Fine, Compulsion Games, ID, Bethesda, and a few more are actively negotiating with Microsoft in hopes of spinning off as independent companies. This can help preserve the upcoming projects and avoid straightaway closure.

However, sources suggest that these negotiations are uncertain, and even if these agreements are considered, layoffs might still happen. Xbox fell into such a situation because over the past few years, billions were spent expanding the portfolio by acquiring studios and publishers. However, the revenue growth was not enough to cover the costs.

If Xbox shutting down Ninja Theory ultimately happens, it would be one of the biggest layoffs in the company’s portfolio under new leadership. For now, fans can only hope that the future of Senua is safe once Ninja Theory gains independence and aid from other investors.