Xbox is closing down Hellblade creator Ninja Theory

Xbox is reportedly closing Ninja Theory, the studio behind the Hellblade series, though employees hope it can still find a buyer. The move comes as several other Xbox-owned studios, including Compulsion Games and Double Fine, are said to be in spinoff talks following leadership warnings of a broader reset.

The reported closure signals Microsoft is continuing to rationalize its gaming portfolio after years of aggressive studio expansion. If more teams seek independence, Xbox’s strategy may shift from owning a large first-party network toward a leaner model focused on fewer, more commercially reliable bets.