Microsoft Xbox Plans to Shut Down Ninja Theory Studio After Senua Reveal

Microsoft’s Xbox division is reportedly preparing to close the Ninja Theory studio, along with Compulsion Games and Double Fine, despite the recent announcement of Ninja Theory’s new game, Senua, at the Xbox Games Showcase. Sources cited by Game File, The Verge and Bloomberg say the decision to sunset or split from Ninja Theory was made before the showcase, using the Senua reveal as a tool to attract investor interest and potential buyers for the studio.

The move follows a broader “reset” initiative announced by Xbox CEO Asha Sharma, who highlighted a sharp decline in the gaming division’s profit margin to around 3 % and a $500 million revenue loss. The restructuring is expected to trigger significant layoffs after Microsoft’s fiscal year ends on June 30, with studios facing either shutdown or forced spin‑offs. No official comment has been made by Microsoft or the studios.

Industry observers note that the plan reflects the financial strain from years of large acquisitions, including the $68.7 billion Activision Blizzard deal, and a shift in strategy toward a tighter portfolio of high‑revenue franchises.