Ninja Theory begins consultation over proposed closure after two failed deals
Ninja Theory starts a staff consultation over a proposed closure after two separate deals fell through, while Xbox still explores other options.
- The studio is now starting a staff consultation over a proposed closure.
- Microsoft says it is still exploring other routes, so the outcome is not yet final.
What happened
Xbox has confirmed that Ninja Theory is starting a consultation process with staff over a proposed closure. In an update from Xbox boss Matt Booty, he said that two separate deals for the studio had fallen through. That means no final closure has been announced, but a formal step toward a possible shutdown has now begun.
Ninja Theory shared the same message through its official X account. It said that two separate deals had failed and that the studio is now entering consultation with employees while other options are still being explored. The sources do not name any potential buyers, give any figures, or provide contract details.
The reporting places the development in the wider Xbox restructuring of 22 September 2026. Eurogamer had previously reported that Ninja Theory still seemed safe in July 2026 after a possible sale or ownership deal, but that arrangement later appears to have fallen apart. The latest update again confirms that two deals failed, without saying who was involved.
A Hellblade project called Senua that surfaced in June is also mentioned in the supplied sources, but its status has not been confirmed. Nothing concrete has been confirmed about how the consultation could affect that project.
Timeline
June 2026: reporting mentions a new Hellblade project called Senua, with no confirmed status in the supplied sources.
July 2026: Eurogamer reports that Ninja Theory had previously seemed safe after a reported sale to an unknown buyer, but that party later withdrew.
22 September 2026: Xbox says two separate deals for Ninja Theory have failed and a consultation over a proposed closure is beginning.
22 September 2026: Ninja Theory confirms via its official X account that the consultation is starting and that other options are still being explored.
22 September 2026: Matt Booty links the situation on behalf of Xbox to the failed deals, without giving further details on the parties or terms.
Background
Ninja Theory is the UK studio behind Hellblade, Enslaved: Odyssey to the West, DmC: Devil May Cry and Heavenly Sword. The studio is part of the Xbox and Microsoft portfolio and is being mentioned in reporting as part of a broader restructuring within Microsoft Gaming.
The supplied sources place the development alongside earlier layoffs and studio consolidation at Xbox. The key distinction is that the official statement refers to a proposed closure and an ongoing consultation, while Microsoft is still said to be exploring other routes. The outcome is therefore not yet fixed.
The sources do not provide names, amounts, or contract details for the two failed deals. The role of the Senua project mentioned in June also remains unclear, as the supplied information does not confirm its status.