Xbox is shutting down Ninja Theory, the developer of the Hellblade series, as part of a broader reset at the company. Other studios like Compulsion Games and Double Fine are in negotiations to spin off.
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<p class="has-text-align-none">Xbox is closing down Ninja Theory, the studio behind the <em>Hellblade</em> series, a source tells <em>The Verge</em>. Staffers were told on a call on Monday about the closure, but they are hoping the studio will find a buyer. The closure comes as "several" Xbox studios at Microsoft, including Compulsion Games and Double Fine, are in "active negotiations" about spinning off, <a href="https://www.bloomberg.com/news/articles/2026-06-15/studios-in-microsoft-s-xbox-division-brace-for-closures?accessToken=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJzb3VyY2UiOiJTdWJzY3JpYmVyR2lmdGVkQXJ0aWNsZSIsImlhdCI6MTc4MTU1NDUzNiwiZXhwIjoxNzgyMTU5MzM2LCJhcnRpY2xlSWQiOiJUR09XOTRLSVAzTE0wMCIsImJjb25uZWN0SWQiOiJCMUVBQkI5NjQ2QUM0REZFQTJBRkI4MjI1MzgyQTJFQSJ9.qu5M4E4sve-8r60rL_e-Xv-LrGJvIGgWiKLxMitTl5A"><em>Bloomberg</em> reports</a>. </p>
<p class="has-text-align-none">The closure and negotiations follow Xbox CEO Asha Sharma and chief content officer Matt Booty warning last week of <a href="https://news.xbox.com/en-us/2026/06/10/next-100-days-xbox-reset/">a "reset" at Xbox</a>, laying out several challenges facing Xbox's business - including that it had "over extended" with its studio system and the hardware c …</p>
<p><a href="https://www.theverge.com/games/950204/xbox-ninja-theory-shutdown-hellblade-senua">Read the full story at The Verge.</a></p>
# Xbox is closing down Hellblade creator Ninja Theory
Source: [https://www.theverge.com/games/950204/xbox-ninja-theory-shutdown-hellblade-senua](https://www.theverge.com/games/950204/xbox-ninja-theory-shutdown-hellblade-senua)
Xbox is closing down Ninja Theory, the studio behind the*Hellblade*series, a source tells*The Verge*\. Staffers were told on a call on Monday about the closure, but they are hoping the studio will find a buyer\. The closure comes as “several” Xbox studios at Microsoft, including Compulsion Games and Double Fine, are in “active negotiations” about spinning off,[*Bloomberg*reports](https://www.bloomberg.com/news/articles/2026-06-15/studios-in-microsoft-s-xbox-division-brace-for-closures?accessToken=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJzb3VyY2UiOiJTdWJzY3JpYmVyR2lmdGVkQXJ0aWNsZSIsImlhdCI6MTc4MTU1NDUzNiwiZXhwIjoxNzgyMTU5MzM2LCJhcnRpY2xlSWQiOiJUR09XOTRLSVAzTE0wMCIsImJjb25uZWN0SWQiOiJCMUVBQkI5NjQ2QUM0REZFQTJBRkI4MjI1MzgyQTJFQSJ9.qu5M4E4sve-8r60rL_e-Xv-LrGJvIGgWiKLxMitTl5A)\.
The closure and negotiations follow Xbox CEO Asha Sharma and chief content officer Matt Booty warning last week of[a “reset” at Xbox](https://news.xbox.com/en-us/2026/06/10/next-100-days-xbox-reset/), laying out several challenges facing Xbox’s business — including that it had “over extended” with its studio system and the hardware component crisis is significantly driving up prices\.*Kotaku*[reported earlier on Monday that](https://kotaku.com/xbox-shuttering-south-of-midnight-peabody-award-compulsion-games-2000706065)Microsoft was planning to shut down Compulsion, though it noted in an update that studio leadership was in “negotiations” with Microsoft\.
Sharma has made many major decisions since taking over at Xbox in February, including locking down*Gears of War: E\-Day*and*Clockwork Revolution*as Xbox console exclusives in an announcement at its Xbox Games Showcase just over a week ago\. During that event, Microsoft also revealed a new*Hellblade*game,*[Senua](https://x.com/NinjaTheory/status/2063679747511500878)*, and its future with this change is unclear\.
Xbox didn’t immediately reply to a request for comment\.
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- Jay Peters
- Tom Warren
Microsoft is laying off 268 Xbox employees as part of an ongoing reset of its gaming business, and Ninja Theory may close after sale attempts fell through.
Microsoft is spinning off four Xbox studios; Double Fine and Compulsion will retain their IP and go independent, while Ninja Theory and Undead Labs join new ownership.
Xbox plans to shut down Compulsion Games and sees executive departures as part of a 'reset' aimed at refocusing studio investments, according to reports.
Microsoft is planning a wave of layoffs and studio closures in its Xbox division, including canceling the Blade game and potentially shuttering Arkane Studios, as part of a cost-cutting reset under new CEO Asha Sharma.
Microsoft's Xbox division is undergoing a major 'reset' with looming layoffs and studio closures, including the potential cancellation of a Blade game and shuttering of Arkane. The report also covers IO Interactive's layoffs after Microsoft pulled out of publishing its Project Fantasy RPG.