Layoffs have begun at Ninja Theory, the Cambridge studio behind the Hellblade games, after Xbox said two separate deals to sell the studio collapsed. More than ten employees have announced on LinkedIn that they lost their jobs or are at risk, as Xbox moves toward a proposed closure of the studio.
Xbox chief content officer Matt Booty told staff that Microsoft had tried to divest Ninja Theory but that two separate agreements fell through. He said Microsoft will now begin consultation with employees on a proposed closure while continuing to explore other paths forward.
The cuts
The list of departing staff is heavy on audio — lead sound designer Daniele Galante, sound designer Matteo Tummino and technical sound designer Alessio Mellina are among those affected. Technical director Loong-Wei Ding, a gameplay programmer, a character artist and several technical artists have also posted that they are out.
Sound has been central to the Hellblade games, which use binaural audio to place voices inside the player's head.
Because Ninja Theory is a UK studio, the closure is only a proposal for now. UK law requires a consultation period before redundancies are final, and that process is still ongoing.
Senua now at risk
The biggest question is what happens to Senua, the third game in the Hellblade series, announced at the Xbox Games Showcase in June 2026 with a 2027 target.
Game File reported in June that Microsoft was already planning to sell or close the studio when the game was revealed, and that the debut trailer may have been meant to attract buyers.
Microsoft filed a standalone Senua trademark on September 15, suggesting it intends to keep the Hellblade property whatever happens to the developers.
End of an acclaimed run
Ninja Theory was acquired by Microsoft in 2018 after the success of Hellblade: Senua's Sacrifice, which won multiple awards for its portrayal of psychosis. Senua's Saga: Hellblade II followed in 2024.
While Double Fine and Compulsion Games went independent this year, Ninja Theory did not find a buyer — and its future now hangs in the balance.
By Hamza Faisal
