Xbox Begins Consultation on Proposed Ninja Theory Closure

Xbox has begun consultation with employees on a proposed closure of Ninja Theory, the England-based studio behind the Hellblade series, after two separate buyout agreements fell through, Xbox Chief Content Officer Matt Booty announced in an Xbox Wire post on September 22, 2026. The announcement came alongside a broader round of restructuring at the Microsoft-owned gaming business. Booty said 268 employees would be laid off across Halo Studios, other Xbox first-party studios, and the Xbox Game Studios management layer, with several studios being merged and consolidated, including Playground Games and Turn 10 Studios. "Unfortunately, two separate agreements for Ninja Theory fell through," Booty wrote. "We will now begin consultation with employees on a proposed closure while continuing to explore other paths forward." Booty said Xbox is still exploring other options for the studio, though no alternative paths were detailed in the statement. Ninja Theory was one of several smaller Xbox Game Studios teams affected by an earlier round of layoffs and structural changes in July 2026.