We were still holding out hope that Ninja Theory might carry on, but the axe has just fallen: this really is the end for the studio behind Heavenly Sword, DmC and the Hellblade saga. It's a tough announcement, coming just a few months after the reveal of a new Senua game that was meant to be the very thing that saved the studio. Sadly, the talks came to nothing and Xbox has now blown the final whistle. A particularly brutal decision for a hugely talented studio that still had plenty of great stories to tell us...
The situation is all the more dramatic given that the announcement of the new Senua instalment back in June gave the impression Ninja Theory still had a future within the Xbox ecosystem. Unveiled during the Xbox Games Showcase in June, the game was set to continue the heroine's story after Senua's Saga: Hellblade II, while noticeably changing up the formula with more action, more freedom to explore and more combat — in short, something more mainstream and less niche.
One step back, one giant fall
To understand what's happening today, you really have to go back to the first big wave of restructuring at Xbox. Ninja Theory was already among the studios whose future looked especially uncertain, but Microsoft chose at the time not to close it down straight away. The idea was to find a way for the developers to continue their work under another banner, with that new Senua game in the pipeline, of course. In July, things even seemed to be looking up, as Ninja Theory had reportedly found a partner interested in taking over. But that first lead ultimately fell through, as did a second attempt made afterwards. In his message to staff, Matt Booty explains that Microsoft will now "begin consulting with employees on a proposed closure", while continuing to explore other options.
In other words, the closure isn't yet legally final, but the chances of Ninja Theory carrying on now seem to hinge on some new eleventh-hour solution. Without a buyer, the studio that left its mark on players with Heavenly Sword, DmC Devil May Cry and the two Hellblade games could disappear for good.
So what happens to Senua?
That's obviously the big question hanging over this announcement. Microsoft hasn't officially confirmed that Senua has been cancelled, but the project is inevitably in a very awkward spot now that its developer is facing closure. The game was pitched as a far more ambitious project than the previous Hellblade titles, with a release slated for 2027. What is intriguing, though, is that Microsoft filed a new SENUA trademark application in the United States on 16 September, along with a similar filing in Europe on 15 September. The filings cover video game software and online gaming services, among other things.
There's obviously no way to state for certain that Microsoft intends to push on with Senua without Ninja Theory, since a trademark filing can be down to purely legal or commercial considerations, but the timing is decidedly fishy. At best, it suggests Microsoft wants to do something with this new Senua, even if the future of the studio that created the character is more uncertain than ever.
Xbox keeps trimming the sails
In any case, Ninja Theory's current predicament comes amid yet another massive restructuring of the Xbox division. Microsoft has announced the loss of a further 268 jobs across Halo Studios, other first-party teams and central and managerial functions within Xbox. At the same time, several studios and franchises are changing hands: Halo moves under Activision's remit, Bethesda takes over oversight of Obsidian, King picks up the Microsoft Casual Games business, while Playground Games and Turn 10 must now work together on Forza and Fable. These are grim times indeed...
