Ninja Theory starts consultation over proposed closure after two failed deals

The studio is now starting a consultation with staff over a proposed closure.
Microsoft says it is still exploring other routes, so the outcome is not yet final.

What happened

Xbox has confirmed that Ninja Theory is starting a consultation process with staff over a proposed closure. In the official update from Xbox boss Matt Booty, he said two separate deals for the studio had fallen through. The wording matters: this is being described as a proposed closure, not a completed shutdown of the studio.

Ninja Theory shared the same message through its official X account. It said two separate deals had failed and that the studio is now entering consultation with employees while other options are still being explored. The sources do not name any potential buyers, give any figures, or include contract details.

The reporting places the situation in the context of wider Xbox cost-cutting and restructuring. Eurogamer had previously reported that Ninja Theory appeared safe in July 2026 after a possible sale or ownership deal, but that arrangement later fell through. The latest update confirms that two more deals have now failed, but does not say who was involved or why the talks broke down.

A Hellblade project called Senua, which surfaced in June, is also mentioned in the supplied sources, but without any confirmed status. Nothing concrete has been confirmed about how the consultation could affect that project.

Timeline

June 2026: reporting surfaces a new Hellblade project called Senua, with no confirmed status in the supplied sources.
July 2026: Eurogamer reports that Ninja Theory had previously seemed safe after a reported sale to an unknown buyer, but that party later pulled out.
22 September 2026: Xbox says two separate deals for Ninja Theory have failed and that a consultation over a proposed closure is beginning.
22 September 2026: Ninja Theory confirms via its official X account that the consultation is starting and that other options are still being explored.
22 September 2026: Matt Booty links the situation on behalf of Xbox to the failed deals, without giving further details on the parties or terms.

Background

Ninja Theory is the UK studio behind Hellblade, Enslaved: Odyssey to the West, DmC: Devil May Cry, and Heavenly Sword. The studio is part of the Xbox and Microsoft portfolio and is being mentioned in reporting as part of a broader restructuring within Microsoft Gaming.

The supplied sources place the development alongside earlier layoffs and studio consolidation at Xbox. The key distinction is that the official statement refers to a proposed closure and an ongoing consultation, while Microsoft is still said to be exploring other routes. The outcome is therefore not yet fixed.

The sources do not provide names, figures, or contract details for the two failed deals. The role of the Senua project mentioned in June also remains unclear, as the supplied information does not confirm its status.

Sources

Eurogamer: report on the proposed closure of Ninja Theory and the failed deals.
Ninja Theory on X: official update saying two separate deals have failed and that a consultation is starting over a proposed closure.