Layoffs Begin at Ninja Theory as the Studio’s Future Hangs in the Balance
Just four months after revealing its next game, Senua, Cambridge-based Ninja Theory is facing fresh uncertainty. Staff have started reporting layoffs and possible redundancies after Microsoft confirmed that two efforts to find a new owner for the studio had fallen through.
While the outlook is troubling, Ninja Theory has not been officially declared closed. In September, Xbox said it was consulting employees about a possible shutdown while also looking into other options. Recent departures suggest the situation has advanced beyond an initial proposal, but the studio’s final fate remains undecided.
Fans are also wondering what will happen to Senua, the action-adventure game announced for a planned 2027 release. Xbox has not said the project is cancelled. However, departures across several teams have raised serious questions about whether it can continue as planned.
What Is Ninja Theory Doing?
The current situation comes after a massive shakeup of Xbox’s game development business.
Xbox made its most significant restructuring in its history in July 2026. It announced that it would cut about 3,200 jobs over the course of fiscal year 2027, including 1,600 role eliminations at the time of the announcement. Xbox also revealed its intentions to have several studios leave the company and seek new ownership.
Ninja Theory was originally going to go this route.
Xbox’s announcement in July, which can be found here, said that Ninja Theory and Undead Labs had reached agreements to join new ownership groups, with funds aimed at finishing and expanding their projects. For Ninja Theory, this specifically included Senua.
This plan did not last.
Xbox’s Chief Content Officer Matt Booty informed employees on September 22 that two separate deals involving Ninja Theory had fallen through. Xbox then began consultation with employees about a closure, while also saying it would be looking at other options.
This is key. Xbox did not announce that Ninja Theory had been permanently closed.
Instead, the studio was entering a consultation process, with its future still technically up in the air.
Layoffs Have Now Commenced
An update that’s more tangible.
On October 5, a number of Ninja Theory staff started publicly revealing that they had left the studio, had been made redundant, or were facing redundancy. VGC — Impacted, or potentially impacted roles, include game play programming, technical direction, technical art, character art, sound and performance-capture work.
Reported staff include:
Gameplay programmer Katrin Mair Technical sound designer Alessio Mellina Technical director Loong-Wei Ding Sound designer Matteo Tummino Senior technical artist Matt Le-Fevre Character artist Pietro Berto Technical artist Justin Pedersen Principal sound designer Daniele Galante Performance-capture staff
The list derives from public pronouncements by employees and reports from outlets such as VGC. It should not be considered a full list of those affected.
Far more importantly, Xbox has yet to reveal an official number of Ninja Theory staff impacted by the latest round of layoffs. So recent reports have centring more on individual exits rather than stating a definitive total from across the studio.
That distinction is important, because the wider Xbox layoff number shouldn’t automatically be equated with how many people are being cut at Ninja Theory.
Why the Studio Is Now At Risk Of Shut Down
The immediate catalyst is the failure of the two proposed buyout deals.
Xbox’s statement in September was notably blunt: the firm stated that both deals to acquire Ninja Theory had collapsed and that a consultation on a likely closure would commence A suggestion of uncertainty for Xbox’s future was also present as the company stated it was “continuing to consider other options”.
This was part of the wider Xbox reorganization. announced in July.
Xbox said its operations had become too costly and complicated, with lower profit margins than those of comparable platform and publishing businesses, and that some of its previous investments had not expanded as quickly as the company had anticipated. The company also said it had grown its studio portfolio too quickly since 2018 and realized that it was neither feasible nor beneficial to hold every formidable indie studio.
The original purpose for Ninja Theory seemed to be to transition the studio into new ownership not shutter it.
That would have enabled Ninja Theory to continue to make games outside of Microsoft’s direct studio arm.
When the two deals fell through, that option was no more, leaving closure consultation as the next course of action.
What Happens to Senua?
This is the biggest question for gamers.
Senua has not been officially canceled.
This is the official position based on Xbox’s public statements.
When Xbox announced the closure, it did not say that Senua had been canceled, moved to another studio, or permanently shelved. It said it would continue to seek other options for Ninja Theory.
However, the current staffing situation makes the project’s previously announced 2027 release date much less reliable.
Senua was announced at the Xbox Games Showcase in June 2026. Ninja Theory touted it as a major change of course for the series: instead of just calling it Hellblade III, the studio presented Senua as a new action-adventure experience with more focus on combat, exploration, movement, and puzzles.
The project was not pitched as a small indie title.
Ninja Theory studio head Dom Matthews said that the entire team had been brought together to work on Senua. He noted that the studio had about 85 creatives working together on the project, the first time in over 10 years that the entire studio had worked on a single game.
This is why the current layoffs are so important. It’s not like you’re just losing one isolated department, but people across gameplay, technical direction, technical art, sound, and performance capture. All of these disciplines directly feed into the creation of a modern cinematic action game.
Why Layoffs Impact Senua So Much More Than Just the Announcement
A studio shutting down consultation does not mean a game is cancelled. Assignments can be passed to other squads, taken over by new ownership or revamped.
The challenge with Senua is that Ninja Theory built it around its own strengths.
Matthews said the project was “a bit of a coming together of all the studio’s talent,” which includes experience from Hellblade, DmC: Devil May Cry, Enslaved and Heavenly Sword. The development team was assembled intentionally with the idea that Ninja Theory could marry its cinematic storytelling with more substantial action-adventure gameplay.
That means a big cull of staff could be disruptive even if Senua itself does not perish.
Such a new team would have to grasp the project’s technology, creative direction, combat systems, story structure, performance capture and production flow. Much of that knowledge could potentially be preserved for a new owner by retaining developers, but there is no confirmed announcement at this point about what the future holds.
This is why “Senua is canceled” is not too much to say right now, whereas “Senua’s future is uncertain” is consistent with the facts available.
Can Senua Still Be Saved?
Yes, but nothing guarantees that at this point.
There are a number of potential routes, but these should be considered possibilities rather than plans.
A New Buyer Could Still Step In
Xbox explicitly stated that it was looking for other ways forward after the two previous deals fell through. Some or all of Ninja Theory and Senua could potentially be saved under a new ownership arrangement.
No buyer has been officially announced yet.
Senua Could Be Relocated
Microsoft may have the option of moving the project to another internal team or restructuring its development.
Again, no official announcement has been made that this is happening at the moment.
Senua Could Be Canceled
This is what fans are starting to fear, as more of the people working on the game are either leaving or being made redundant.
But cancellation is not yet confirmed.
The safest conclusion is that Senua is now in limbo, not necessarily dead.
FAQ
Is Ninja Theory officially closed?
Not yet. Xbox has indicated consultation on a proposed closure while asserting it is “considering other options”.
Were there any layoffs at Ninja Theory?
Yes. Several developers have publicly said they are leaving or facing redundancy, and VGC reports layoffs across multiple departments. The aggregate number has not been publicly stated.
Is Senua canceled?
No official cancellation has been confirmed Senua’s future is unknown due to the studio’s proposed closure and current layoffs.
When was Senua Originally Scheduled to the release date?
Senua was announced for 2027. Xbox have not announced a replacement release date or cancellation following the latest Ninja Theory news.
Is Senua Hellblade III?
Ninja Theory made a conscious decision to name the game Senua and not Hellblade lll. The studio said this decision represents the game’s different focus and more action-adventure game play.
What platforms is Senua revealed for?
The confirmed platforms are: Xbox Series X|S, Xbox on PC, Cloud, Steam and PlayStation 5. It was also released on Game Pass and Xbox Play Anywhere.
What happened to Project Mara?
Ninja Theory had already dropped work on Project Mara when Senua was announced. Studio head Dom Matthews told The FADER that the move enabled the whole team to concentrate fully on Senua.