Microsoft Signals Intention to Close Down Ninja Theory After Deals to Save the Hellblade Developer Fall Through

Microsoft has indicated its intention to close down the developer behind the Hellblade series, Ninja Theory. This comes after two deals meant to save the studio failed. In accordance with UK employment law, Microsoft has begun consultations with staff at the Cambridge-based studio. While Microsoft claims it will now work to close the studio, it remains open to an agreement that could rescue the company.

Xbox Chief Content Officer Matt Booty announced this decision in a recent blog post. The closure news follows Xbox Games Showcase event in June, where Microsoft unveiled Senua, the third installment in the Hellblade series. However, this enthusiasm was quickly dampened by Xbox's "reset" memo from new CEO Asha Sharma, which suggested significant layoffs and studio closures.

Ninja Theory was among the studios Microsoft was reportedly considering for closure in July. The cancellation of Senua's release, just days after the studio's doom was announced, left fans and gamers puzzled. Microsoft's decision to close Ninja Theory appears to have been based on the promise of Senua to attract investor interest.

However, this plan appears to have backfired. The future of Senua now seems uncertain, with no comment from IGN. Nevertheless, there is still hope for Ninja Theory, as other developers like Double Fine and Compulsion have successfully transitioned to independence. Microsoft might even consider giving Ninja Theory its intellectual property to help the studio exit gracefully.

Currently, Microsoft is focusing on its big franchises such as Minecraft, Halo, Fallout, and The Elder Scrolls to boost revenue and profitability, diverting resources away from struggling studios like Ninja Theory.