Report: Ninja Theory lays off workers after failing to spin off from Xbox

Imran Khan,Contributing Editor

October 5, 2026

schedule2 Min ReadImage via Ninja Theory/Xbox

Hellblade and Bleeding Edge developer Ninja Theory is reportedly laying off workers after Xbox leadership has been unable to find a solution to keeping the studio operational, whether that is under Xbox or separate from it.

Ninja Theory was acquired by Microsoft as a first-party Xbox Game Studios developer in 2018 Saga for $117 million, according to FTC filings, after releasing games like Enslaved, DmC: Devil May Cry, and Hellblade: Senua’s Saga.

The news comes from a Ninja Theory developer on LinkedIn (via VGC) who writes that their role is at risk of redundancy after 12 years with the studio. The technical sound designer does not get into details as to the size and scope of the job cuts, but states that they are looking for new opportunities. Other Ninja Theory now-former employees including one performance capture technician and gameplay programmer also posted similar eulogies for their employment on LinkedIn, as well.

The fate of Ninja Theory has been in flux since July of this year, amidst what was described by Xbox leadership as a “reset,” Xbox announced 3200 job cuts across the division that included planned studio closures and divestures. Ninja Theory and Undead Labs were specifically mentioned as studios that would be spun off under new ownership, with Undead Labs successfully divesting from Xbox as an independent studio. Last month, in an Xbox Wire post titled “Continuing Our Reset,” Xbox’s Chief Content Officer Matt Booty mentioned that attempts to find buyers for Ninja Theory have fallen through.

It was reported by Game File in June that Xbox was aware of Ninja Theory’s upcoming fate when it announced the new title Senua at the platform-holder’s presentation adjacent to Summer Game Fest. Game File’s reporting indicated that Microsoft announced the title to generate interest in a buyer for the studio, which ultimately did not materialize.

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About the Author

Imran Khan

Contributing Editor

Imran Khan has been in the games industry in various forms for over two decades. He has been a former senior editor at Game Informer, a professional loudmouth at Kinda Funny, and news director at Fanbyte. He has also been doing PR for Vicarious PR and Head of U.S. PR for Japanese VR studio MyDearest, in addition to Producer work on their latest title Brazen Blaze.

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