The uncertainty surrounding XBOX’s ongoing restructuring appears to be growing by the hour, with a new report claiming that Ninja Theory, the acclaimed studio behind the Hellblade series, could be facing closure.

The report arrives amid a turbulent period for Microsoft’s gaming division, as several first-party studios are reportedly dealing with layoffs, budget cuts, and questions about their long-term future under XBOX’s new leadership.

Ninja Theory Could Be The Latest Studio Hit By XBOX Cuts

According to a report from The Verge, sources familiar with the situation claim that Ninja Theory employees were informed earlier this week that the studio may be shut down as part of Microsoft’s broader restructuring efforts.

While no official announcement has been made by either XBOX or Ninja Theory, the report suggests there is still a possibility that the studio could avoid closure if a buyer is found before the process is finalized.

The situation comes as Microsoft continues implementing cost-cutting measures across its gaming division following years of massive spending on acquisitions, studio expansion, and platform investments.

Another Blow Following Compulsion Games Reports

Ninja Theory is not the only studio reportedly under pressure.

Earlier reports suggested that Compulsion Games, the developer behind South of Midnight, is also facing an uncertain future as XBOX continues its restructuring process.

Additional rumors have also circulated regarding Double Fine Productions, the studio responsible for beloved titles such as Psychonauts, Brütal Legend, Massive Chalice, and the recently announced Keeper.

While not all reports have been officially confirmed, the growing number of studios linked to potential closures has sparked concern throughout the gaming industry.

Timing Could Not Be More Surprising

Perhaps the most shocking aspect of the report is its timing.

During the recent XBOX Games Showcase, Ninja Theory unveiled Senua, a brand-new project that many fans immediately described as a spiritual successor—or even a potential continuation—of the Hellblade saga.

The announcement generated significant excitement among players, especially following the success of Senua’s Saga: Hellblade II.

At the time, the project was targeting a 2027 release window, making reports of an imminent closure particularly difficult to understand from an outside perspective.

If the studio is ultimately unable to secure new ownership, the future of Senua could suddenly become uncertain.

Microsoft’s Gaming Division Continues To Change

The reported closure discussions come shortly after XBOX leadership warned employees that difficult decisions were ahead.

According to multiple reports, Microsoft has been reassessing its gaming business after years of significant investment, including the acquisitions of Bethesda, Activision Blizzard, and numerous internal development teams.

While recent showcases have highlighted an impressive lineup of upcoming titles, the company is also facing increasing pressure to improve profitability and streamline operations.

As a result, several teams now appear to be caught in the middle of a major corporate restructuring effort.

No Official Confirmation Yet

At the time of writing, Microsoft has not publicly confirmed plans to close Ninja Theory.

As with any report involving internal restructuring, details could still change, particularly if alternative solutions emerge. However, if the claims prove accurate, it would mark one of the most surprising studio closures in recent XBOX history.

For many players, Ninja Theory has become one of Microsoft’s most respected creative teams thanks to its work on Hellblade, Enslaved: Odyssey to the West, DmC: Devil May Cry, and more recently, Senua’s Saga: Hellblade II.

Losing the studio would undoubtedly leave a significant gap in XBOX’s first-party portfolio.