Microsoft reportedly had already planned to sunset or split with Hellblade: Senua's Sacrifice maker Ninja Theory when it showcased its new title, Saga, on its June 7 presentation.
By the time Ninja Theory revealed the third title in the Hellblade franchise, Senua, its parent company was reportedly set on splitting with the team.
Yet, it's unclear if anyone atop Ninja Theory was involved in the reported plan.
This is due to Xbox being reportedly preparing to shut down what it deems to be less-profitable game development teams.
Rumblings of possible cuts that could lead to a studio closure or changes to the Xbox Game Studios lineup also started last week.
Microsoft reportedly had already planned to sunset or split with Hellblade: Senua's Sacrifice maker Ninja Theory when it showcased its new title, Saga, on its June 7 presentation.
The allegation comes from Game File, based on a source familiar with Microsoft's plans who spoke with the publication under anonymity. By the time Ninja Theory revealed the third title in the Hellblade franchise, Senua, its parent company was reportedly set on splitting with the team.
The thinking, based on what the source told Game File, was that the promise of a newly announced game could help draw investor interest in the studio. Yet, it's unclear if anyone atop Ninja Theory was involved in the reported plan.
This is one of multiple reports regarding internal turmoil at Xbox. According to Bloomberg News, the heads of multiple Xbox studios, including Double Fine, Compulsion Games, and yes, Ninja Theory, are all actively negotiating to spin off into independent companies to preserve their future. This is due to Xbox being reportedly preparing to shut down what it deems to be less-profitable game development teams.
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Yet, the reported negotiations are not guaranteed to end in success. Employees at these studios have apparently been given permission to look for jobs elsewhere. Moreover, even if studios are able to spin off and reclaim independence, the move could still lead to layoffs, as they would be operating without the funding and support promised by Microsoft.
Last week, Xbox CEO Asha Sharma said she was preparing to reset Microsoft's video game division after years of decline. According to reports, the move is bound to result i major cuts across the division shortly after the conclusion of Microsoft's fiscal year on June 30, 2026. Xbox is reportedly also planning to reduce marketing budgets and spending across other areas of the business. Rumblings of possible cuts that could lead to a studio closure or changes to the Xbox Game Studios lineup also started last week.
"It is important to have both optimism and realism as we work to reset the business," reads a memo sent by Sharma and Xbox chief content officer Matt Booty.
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