Ethan Crossfield 
Large-scale restructuring across Microsoft's gaming division is continuing to affect first-party development teams. Ninja Theory, the British studio responsible for the Hellblade series, has now been hit by layoffs and possible redundancies, adding pressure to a company already considering whether the developer can remain open.
Ninja Theory Staff Report Layoffs and Redundancies
The exact number of affected employees has not been disclosed, but several former and current Ninja Theory staff members have described their situations publicly on LinkedIn. Technical sound director Alessio Mellina said he was at risk of redundancy after almost 12 years with the studio, while gameplay programmer Katrin Mair confirmed that she had been laid off after four years. Mair also indicated that the departures could prevent the team from completing work already in progress. These reports follow Microsoft's September 22 confirmation that hundreds of employees would leave teams across its global first-party organization, including Halo Studios and other development groups.
Senua's Future Is Tied to the Studio's Survival
Ninja Theory revealed Senua at the June 2026 Xbox Games Showcase. Presented as the third entry in the Hellblade series, the Unreal Engine 5 game is planned for PlayStation 5, Xbox Series X/S, and PC, with a current target of 2027. The project is designed around broader environments than its predecessors, combat against multiple enemies, and situations where players can use stealth instead of fighting. Xbox reportedly used the showcase appearance partly to attract a potential buyer for Ninja Theory, making the game's progress important not only to the franchise but also to any future sale of the studio.
Microsoft Has Not Confirmed a Closure
Ninja Theory remains open, but its long-term position is uncertain. Xbox executive Matt Booty previously said that two potential deals involving the studio had collapsed. Microsoft has been preparing employee consultation discussions required under British law while continuing to examine other options for keeping Ninja Theory operating. That process means the layoffs do not, by themselves, confirm an immediate shutdown. However, the combination of failed acquisition talks, staff reductions, and a project still in development leaves the studio with fewer clear paths forward. The situation also reflects broader changes at Xbox, including the decision to combine Turn 10 Studios and Playground Games while other former subsidiaries, such as Double Fine and Compulsion Games, became independent.
Key points
- Ninja Theory staff have reported layoffs and redundancy risks.
- The total number of affected employees remains unknown.
- Microsoft says it is exploring options to keep the studio open.
- Senua is still planned for PS5, Xbox Series X/S, and PC in 2027.
Expert View
For the Hellblade community, the immediate concern is whether Senua can maintain its scope and reach release while Ninja Theory's structure is being reconsidered. For the wider games market, the case shows how restructuring can threaten established studios even when they have recognizable franchises and announced projects. Until Microsoft reveals a buyer, a new operating model, or a formal closure plan, both Ninja Theory and Hellblade remain in a holding pattern.
