Ninja Theory Faces Proposed Closure After Two Ownership Deals Fall Through

Ninja Theory could close after two attempts to move the Hellblade developer out of Microsoft ownership fell through.

Microsoft says it will begin consultation with employees over a proposed closure while continuing to explore other options for the studio. The process means Ninja Theory has not been formally shut down, but its future is now uncertain after both planned ownership transfers failed.

The announcement also leaves questions around Senua, the studio's next game. Microsoft has not announced any change to its previously confirmed 2027 release window.

Microsoft originally announced in July that Ninja Theory had entered terms to join new ownership, with funding intended to help complete and grow Senua.

That transition has not gone ahead. In its latest restructuring update, Microsoft said two separate agreements involving Ninja Theory fell through. The company says it will now begin consultation over a proposed closure while continuing to explore other paths forward.

Microsoft has not identified either prospective buyer or explained why the agreements failed.

The company has also not said that closure is now unavoidable. Its current position is that consultation will begin while other possible paths for Ninja Theory continue to be explored.

Microsoft has not announced a cancellation of Senua.

Ninja Theory revealed the project at the Xbox Games Showcase in June as a new action-adventure set in the Hellblade universe. At the June reveal, studio head Dom Matthews said all 85 creatives at Ninja Theory were working on the game, which expands combat, exploration, and puzzle-solving beyond the structure of the earlier Hellblade titles.

The game was announced for 2027 on Xbox Series X|S, PC, cloud, Steam, and PlayStation 5, with Game Pass and Xbox Play Anywhere support also confirmed.

Microsoft's September restructuring update does not explain whether development will continue unchanged during consultation, what would happen to the project if Ninja Theory closes, or whether another team could eventually take responsibility for it.

Ninja Theory was one of several developers Microsoft planned to move outside Xbox ownership as part of its wider restructuring.

Compulsion Games and Double Fine successfully returned to their management teams in August with their intellectual property, back catalogs, and runway funding. Undead Labs has also completed its transition and is still expected to release State of Decay 3 with a new publisher.

Ninja Theory is now in a different position because its two planned transactions did not complete.

Arkane is also still undergoing consultation over its future, with Microsoft expecting that process to continue through the end of 2026. For Ninja Theory, the next confirmed step is consultation with employees over the proposed closure while Microsoft continues looking for another outcome.