Ninja Theory begins layoffs following Hellblade announcement
Microsoft-owned game studio Ninja Theory, known for the Hellblade series, has begun staff reductions. This follows the collapse of several potential acquisition deals for the studio.
Ninja Theory, the UK-based game studio owned by Microsoft and acclaimed for the Hellblade series, has commenced layoffs. Multiple employees have reported via LinkedIn that they have lost their jobs or face termination. Microsoft had announced in late September that it would enter consultations with staff regarding the studio's potential closure, following the failure of several acquisition attempts.
According to the gaming publication VGC, sound designers, programmers, artists, and the studio's technical director are among those confirming that their positions are being eliminated or are at risk. The total number of employees affected remains undisclosed. One gameplay programmer reportedly expressed sadness that the team would not be able to finish their current project, believed to be "Senua," the third installment in the "Hellblade" franchise. This project represented the studio's sole focus for the first time in over twelve years.
Ninja Theory revealed "Senua" on June 7 during the Xbox Games Showcase. The game, intended for Xbox, PC, and PlayStation 5, was given significant promotional support and was slated for a 2027 release. Less than two weeks later, reports emerged that Ninja Theory, along with Compulsion Games and Double Fine, faced potential closure.
Industry newsletter Game File reported that Microsoft had intended to sell the studio at the time of the "Senua" announcement, aiming to generate interest from potential buyers. In July, an internal Xbox memo from then-head Asha Sharma offered hope, indicating agreements with new owners and funding for the game's completion. However, by late September, Xbox Games head Matt Booty confirmed in another memo that two separate deals had fallen through, leading Microsoft to begin consultations with staff about closure.
Ninja Theory became part of Microsoft in 2018. The studio gained significant recognition for "Hellblade: Senua's Sacrifice," which received five BAFTA Games Awards in 2018. The sequel, "Senua's Saga: Hellblade 2," was showcased in late 2019 to demonstrate the capabilities of the newly revealed Xbox Series X.