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XBOX To Close Ninja Theory As Deals Fall Through

A new update reveals that XBOX will be shutting down Ninja Theory as deals to acquire the studio have fallen through.

The company just made an announcement, revealing the next set of layoffs from their earlier announced reset. In the announcement post, it was revealed that there were 268 roles being eliminated across Halo Studios and other first-party studios, with a lot of reorganization announced too. However, Ninja Theory seems to have failed to find a new home.

Ninja Theory to Shut Down

The new blog post indicates that two separate agreements involving Ninja Theory did not succeed, a point also confirmed by a post from Geoff Keighley, who added, ‘Xbox will now close Ninja Theory’. The company has announced that it is starting discussions with employees regarding a potential closure while still looking into other options for the future. Additionally, the post reveals that the team is continuing its consultations with Arkane, which are expected to last through the end of 2026.

Reports about Ninja Theory being shut down have been circulating since the beginning of this year, even after the studio unveiled a brand new game at the XBOX Games Showcase earlier this year: Senua. A report also stated that XBOX only revealed Ninja Theory’s new game to attract buyers for the studio.

The same announcement reveals that Activision is expanding its remit to World’s Edge and Rare, and will also be developing the next Halo title. Bethesda is expanding its remit to include Obsidian, which will continue to work on Grounded and the new Fallout project. Playground and Turn 10 will become one studio focused on the Forza and Fable franchises.

What are your thoughts on XBOX shutting down Ninja Theory? Leave your thoughts down in the comments, and join the official Insider Gaming Discord server.


For more information from Insider Gaming, read about Matt Booty’s memo to staff on the latest layoffs. Don’t forget to sign up for our weekly newsletter.

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