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Xbox has begun consulting Ninja Theory employees over a proposed studio closure, and staff layoffs or redundancy risk have been reported. The studio has not been declared closed, and no confirmed total for Ninja Theory employees affected has been published in the sources reviewed.
What is happening at Ninja Theory?
Xbox said on September 22, 2026, that two separate agreements to transfer Ninja Theory to new ownership had fallen through. Xbox Game Studios head Matt Booty said the company would “begin consultation with employees on a proposed closure while continuing to explore other paths forward.” That describes a proposed closure under consultation, not a completed shutdown. Xbox’s September statement is the clearest official account of the studio’s status.
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On October 6, Gadgets 360 reported that Ninja Theory employees had begun posting about layoffs or redundancy risk. The report said the studio had not confirmed how many staff were affected. The report also quoted gameplay programmer Katrin Mair describing the sadness of not getting to finish work in progress; her post is not an official announcement that a particular game has been cancelled.
What is the timeline?
| Date | What was announced or reported |
|---|---|
| July 6, 2026 | Xbox CEO Asha Sharma said Xbox planned approximately 3,200 role reductions across FY27, including approximately 1,600 role eliminations that day. Xbox also said Ninja Theory and Undead Labs had entered terms to join new ownership, with funding intended to complete and grow their respective games. These were Xbox-wide restructuring figures, not a Ninja Theory layoff count. Xbox’s July announcement |
| September 22, 2026 | Xbox said both Ninja Theory agreements had fallen through and that employee consultation on a proposed closure would begin, while other paths remained under exploration. Xbox’s September statement |
| October 6, 2026 | Gadgets 360 reported staff posts describing layoffs or redundancy risk, while noting no confirmed number of affected Ninja Theory employees. Gadgets 360’s report |
How many Ninja Theory employees have been affected?
No Ninja Theory-specific affected total is confirmed in the sources reviewed. Do not interpret Xbox’s approximately 3,200 planned role reductions or approximately 1,600 same-day eliminations as studio figures: Sharma announced those numbers for the wider Xbox workforce. Ninja Theory’s website describes its team as “just over 100 people,” but that is an undated studio description, not a current 2026 headcount or a count of layoffs. Ninja Theory’s About page
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Why did the proposed transfer fall through?
Xbox has said that two separate agreements fell through, but its September statement does not explain why. The sources reviewed do not establish the prospective buyers’ identities, the agreement terms, or the reasons either agreement failed, so attributing the outcome to a particular financial or business issue would be speculation.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What happens to the next Hellblade game?
The October report describes a project called Senua as the third Hellblade title and says it was announced for PC, Xbox Series S/X, and PS5 in 2027. Its status is unclear amid the proposed closure: the sources reviewed do not confirm cancellation or a revised release date. Ninja Theory’s official games page lists Hellblade: Senua’s Sacrifice and Senua’s Saga: Hellblade II, but that listing does not resolve the future of the announced project. Ninja Theory’s About page
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