The big developing news this week is Xbox’s reported plans to cut several studios from its game division, with Compulsion Games (South of Midnight), Double Fine (Psychonauts), and Ninja Theory (Hellblade) specifically cited as being at risk of closure. Ninja Theory was especially surprising given it had revealed a third Hellblade title called Senua during the Xbox Games Showcase less than two weeks ago. However, a new report alleges that this had always been the plan.
Game File, a newsletter written by veteran reporter Stephen Totilo, reports that Xbox had already planned to either sunset or split with Ninja Theory before the announcement of Senua, per an anonymous source said to be familiar with Microsoft’s plans. This was done with the idea that announcing a new game would attract investors to fund the studio following an Xbox divorce or studio closure. Game File also reports that it is unknown if Ninja Theory’s leadership was involved in this plan.
Neither Xbox nor Ninja Theory, Compulsion Games, or Double Fine has publicly confirmed any of the reports regarding their status over the last couple of days. However, The Verge reported earlier this week that Ninja Theory has already been closed and is currently seeking a buyer. The reported studio closures follow Xbox CEO Asha Sharma and chief content officer Matt Booty’s plans for a “reset’ of the Xbox division, which would involve significant layoffs.
Senua was announced as the third Hellblade game, but is billed as a full-on action-adventure title with an increased emphasis on combat. It is scheduled to launch in 2027 for PlayStation 5, Xbox Series X/S, and PC.