Microsoft plans to close down or spin off Ninja Theory, the studio behind the Hellblade series, despite the studio revealing a new Hellblade game called Senua at the June 7 Xbox Games Showcase [1, 2, 3, 4, 5, 6, 7]. The closure or spin-off plans were internally decided before the Senua announcement. The new game's reveal was reportedly aimed at attracting buyers or investors to help avoid shutting the studio entirely [2, 3, 4, 5, 6, 7].
Ninja Theory employs about 100 people and spends roughly $12 million annually on payroll costs [6]. It is unclear whether Ninja Theory's leadership knew about the closure or spin-off plans prior to announcing the new game [2, 4, 5, 6]. Microsoft’s gaming division has been under pressure. Xbox CEO Asha Sharma stated, "Excluding Activision Blizzard King, over the past five years, we have spent over $20 billion on ongoing investments in our content, platform, and hardware subsidy, but our annual revenue has declined nearly half a billion during that time. Going forward, this cannot continue" [2].
Ninja Theory is not alone in facing closure or spin-off negotiations. Other Xbox studios like Compulsion Games and Double Fine are reportedly in active talks with Microsoft about buyouts or spin-offs to avoid shutdowns [1, 2, 3, 6, 7].
In early June, Xbox CEO Sharma issued a "reset" memo warning of challenges and possible restructuring that could include studio closures [1, 2]. Ninja Theory staff were informed on June 15 that the studio is planned to be closed down [1].
The next major game industry event and Microsoft investor update will be closely watched for further details about the company's restructuring plans and the future of its creative studios.
