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Ninja Theory Being Closed Days After Revealing New Game, It’s Claimed

In a whirlwind day of news for a string of XBOX Game Studios, many have found themselves facing the brunt of despair as multiple studios sit on a precipice. Earlier today, it was suggested that South of Midnight developer, Compulsion Games, would be shuttered by XBOX, and now, it has been claimed that Ninja Theory, the creator of the Hellblade games, is also closing down.

This news comes as several studios are reportedly fighting to keep their doors open under XBOX, a company hellbent on restructuring and resetting to cut costs for the year ahead.

Hellblade Creator Faces XBOX Closure

Ninja Theory is the latest studio to be targeted by XBOX’s cost-cutting measures, it has been revealed. In a new report from The Verge, it was claimed that sources advised the studio is being closed down. It was stated that employees were informed about the impending action on Monday about the imminent closure, but there is still hope that the studio can find a buyer before that happens.

Earlier today, Insider Gaming confirmed with sources that Compulsion Games, the developer behind South of Midnight, is also facing the chop from XBOX, which is rapidly restructuring under Asha Sharma’s new rule.

Later in the day, another report surfaced suggesting that Double Fine, the creator of Kiln, Massive Chalice, Keeper, Psychonauts, Brutal Legend, and many more titles, would also be shutting down. That same report mentioned Ninja Theory, which, as this latest claim suggests, has been confirmed as imminently closing.

This news comes just days after Asha Sharma, the newly appointed CEO of XBOX (well, 100+ days ago), sent an email to XBOX employees warning them of impending layoffs following an underperforming few years that have led to immense spending by the tech titan.

She spoke of the company suffering from the hardware component crisis, spending huge amounts on investments that haven’t yielded an ideal return, and over-expanding on studio acquisitions.

Bizarrely, this news about Ninja Theory comes mere days after the studio unveiled Senua, a game that is kind of Hellblade 3, during the most recent XBOX Games Showcase, a key part of the Summer Game Fest celebration. The game is slated to launch in 2027, but that’ll only happen if Ninja Theory can locate a buyer to stave off the wolves at the door.

Last year, Hellblade 2 spearheaded the BAFTA Games Awards nominations slate, going on to win numerous awards at various shows throughout the year.

Are you shocked by the news about Ninja Theory? Let us know your thoughts on the Insider Gaming Discord server.


For more Insider Gaming coverage, check out the news that Treyarch’s studio head is leaving after 22 years

Written by
Grant Taylor-Hill
Senior Editor and Esports Lead

Grant has been gaming for 30+ years and in the industry for 10+. You'll probably find him playing a post-apocalyptic game or an extraction shooter somewhere.

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