Report: Xbox was set on splitting with Ninja Theory when unveiling its new project

Microsoft reportedly announced Hellblade developer Ninja Theory’s new game, Senua, at its Xbox Games Showcase on June 7 with an unconventional strategy: to attract investor interest in the studio before closing it.

According to sources cited by journalist Stephen Totilo at Game File, Microsoft had already decided to “sunset or split” with Ninja Theory when the Senua reveal took place. The thinking, based on internal planning, was that unveiling a new game could draw potential buyer interest in the studio. It remains unclear whether anyone at Ninja Theory was aware of this plan.

The timing proved dramatic. Just 10 days after Senua’s announcement, Xbox CEO Asha Sharma published a “reset” memo outlining significant layoffs and studio closures, citing that Microsoft’s gaming business operates on a razor-thin 3% profit margin. Ninja Theory, along with developers Compulsion Games and Double Fine, became among the studios reportedly facing closure or spin-off from Xbox Game Studios.

The revelation transformed what initially seemed like a strategic misalignment—announcing a game for a studio about to close—into what appears to be deliberate corporate strategy: use an exciting announcement as a tool to generate external interest and potentially secure an acquisition before the closure is publicly announced. For fans and industry observers, the reports highlighted the jarring contrast between the enthusiasm surrounding Senua’s 2027 release and the studio’s precarious status under Microsoft’s ownership.

Report: Xbox was set on splitting with Ninja Theory when unveiling its new project

Sources