Ninja Theory, Hellblade developers, face closure after Microsoft fails to secure buyers

Microsoft Moves to Close Ninja Theory After Sale Talks Collapse

Microsoft is moving toward shutting down Ninja Theory, the Cambridge-based studio behind the Hellblade series, after attempts to sell the team fell through. The proposal is part of a fresh wave of Microsoft layoffs that has seen Xbox cut 268 staff and consolidate several of its best-known studios. Earlier this year, Microsoft had put Ninja Theory up for sale as thousands of jobs were eliminated across the company in a push to squeeze more profit out of the Xbox business.

Sale Deals Fell Through

Back in July, Microsoft announced that Ninja Theory and Undead Labs had "entered terms to join new ownership with funding to complete and grow" their current projects. Undead Labs has since been sold to unnamed buyers, but the same could not be said for Ninja Theory. "Unfortunately, two separate agreements for Ninja Theory fell through," Xbox chief creative officer Matt Booty wrote in a newswire memo. "We will now begin consultation with employees on a proposed closure while continuing to explore other paths forward."

A Studio That Has Survived Before

If there is any comfort to take, it is that Ninja Theory has weathered hard times before. Founded in 2000 as Just Add Monsters Limited and initially owned by Argonaut Games, the team made the original Xbox brawler Kung Fu Chaos. When Argonaut collapsed, Ninja Theory bought its independence, then narrowly avoided bankruptcy by partnering with Sony on the PS3 action title Heavenly Sword, which featured Andy Serkis as a raging mad king.

The studio earned acclaim with Enslaved: Odyssey to the West, an Alex Garland collaboration reworking the Chinese classic Journey to the West, and notoriety with DmC: Devil May Cry, a reboot of Capcom's struggling action series drawing on Fight Club, Jack Kerouac and The Sex Pistols.

Today, Ninja Theory is best known for Hellblade: Senua's Sacrifice (2017), which attempted to depict psychosis through a disembodied chorus reminiscent of Ancient Greek theatre — an approach that drew mixed responses from people with lived experience of the condition. Microsoft bought the studio in 2018, and it went on to release Senua's Saga: Hellblade II, which our reviewer Rick Lane found uneven. A third game, Senua, was revealed just weeks before Microsoft announced the sale — timing widely seen as an attempt to attract buyers.

Staff Speak Out

Current and former employees have been reacting on LinkedIn. "Well, the timing is certainly… interesting," said Hellblade motion capture artist Robynne Austin, in a post noting she is available for work. Former producer Chris Rowe said he was "devastated."

"I had one of the best times of my career working at Ninja Theory on Enslaved: Odyssey to the West and some DmC afterwards before then leaving to join Capcom, and even after all these years, I'm still blown away by the amount of talent inside that studio," Rowe said, adding that many colleagues from the early 2010s were still there and had become "absolute masters of their respective crafts."

"The Senua series was fantastic at pushing the boundaries of visuals and performance capture," he added, "but I think a lot of gamers would have loved to see the studio tackle and release a wider variety of core audience action/adventure games over the last 9 years."

Consultation with employees on the proposed closure is now underway, while Microsoft says it is still exploring other options for the studio.

Source: the original publisher