Weeks after Xbox started discussing shutting down Hellblade studio Ninja Theory, more employees now claim they are being laid off

Xbox COO Matt Booty said that the company could not reach an agreement to keep Ninja Theory open or allow it to become independent.

“Unfortunately, two separate agreements for Ninja Theory fell through,” Booty said last month. “We will now begin consultation with employees on a proposed closure while continuing to explore other paths forward.”

The consultation process now appears to be affecting studio employees, with several developers publicly confirming their employment status.

Developer says it is sad to leave unfinished work

Gameplay programmer Katrin Mair said she was facing redundancy and reflected on her four years at Ninja Theory.

“After four years, it’s hard to put into words how much this place and the people in it have meant to me,” Mair wrote. “I’ve learned an incredible amount, grown so much as a programmer, and had the chance to work with some genuinely brilliant people. What I’ll remember most is how much people cared. About the work, about the details, and about each other. I feel very lucky that this was the place where I got to start my career and grow into the programmer I am today. It’s incredibly sad knowing that we won’t get to finish what we were working on. So much care, talent and effort went into it, and I really wish we’d had the chance to see what it could have become.”

Future of Senua remains uncertain

The fate of Senua, the third Hellblade game, remains unconfirmed. Xbox announced the title at its June 2026 Games Showcase and said it was targeting a 2027 release.

Game File later reported that Xbox was already considering selling Ninja Theory at the time and had used the Senua trailer to attract potential buyers. The plan does not appear to have resulted in a sale.

Xbox has not announced that Senua has been cancelled, but with Ninja Theory facing a proposed closure and developers now reporting layoffs, the game’s future remains uncertain.