Xbox shuts down Ninja Theory and divests other studios

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Niklas Bender
Niklas Bender at PlayFront stands for clear analysis and independent journalism. His focus: deconstructing PR platitudes and providing an unflinching analysis of an often complacent community. He...
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Microsoft is shutting down Hellblade studio Ninja Theory. Compulsion Games and Arkane are negotiating a buyout. Details on the Xbox crisis.

Microsoft is apparently liquidating the remnants of its ambitious 2018 acquisition list. According to recent reports, the British studio Ninja Theory is on the verge of closing, and the staff was informed on Monday.

At the same time, Compulsion Games, Double Fine, and Arkane are negotiating a management buyout to avoid liquidation by their parent company. The deadline for these negotiations is the end of the month. Xbox will finalize the deal by June 30th.

The End of Hellblade and the Principle of Hope

Ninja Theory delivered with "Senua's Saga: Hellblade II" and just released "Senua" announcedThe game was released in May 2026, found its niche, but simply wasn't profitable enough for Microsoft. Now, management is looking for an external buyer for the studio and the brand rights, while the developers are being laid off. It's standard procedure.

For Compulsion Games For South of Midnight, Double Fine, and Arkane, the reality is no better. Attempting to buy their way out of the Xbox alliance is not a sign of strength; it's running from the executioner. Such a move to independence typically halves the workforce even before the contract is signed. Employees at Compulsion and Arkane are already reporting internally that layoffs are underway.

The numbers are beating the content pipeline.

Microsoft is correcting the miscalculations of recent years. The plan to permanently feed Xbox Game Pass with exclusive content through the massive acquisition of mid-sized development studios hasn't worked out. The acquisition of Activision Blizzard has shifted the company's priorities. Anyone spending $69 billion demands immediate billion-dollar profits from established brands like Call of Duty. There's no money—or interest—for ambitious art projects with budgets in the hundreds of millions.

The market currently tolerates no stagnation in subscription numbers. If Xbox Series X/S hardware sales plummet and Game Pass fails to attract new customers, the tolerance for niche products will shrink to zero. Tango Gameworks was the beginning. Ninja Theory is the logical next step. Highly acclaimed, critically acclaimed games don't pay for server farms.

For hardcore Xbox fans, the foundation of the Xbox ecosystem is currently crumbling. The promised diversity is giving way to pure risk minimization. Xbox owners will henceforth receive the same old, generic releases from major franchises, while distinctive titles are being discontinued. Game Pass is also losing its value.

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Kevin Pain
18. June 2026 02: 35

No loss. Both parts were dirt.

Robert Büge
17. June 2026 22: 17

Dominic Pogroszelski, especially if Xbox gets made to feel inferior, Sony will have the market to themselves and can set whatever prices they want. Just imagine how all the Sony Chantalles will whine then! 😂😂😂

Dominic Pogroszelski
18. June 2026 05: 38
Reply to  Robert Büge

Robert Büge, I've said that too, but the fanboys don't understand it; they just want to make those who don't celebrate their garbage feel bad, the rest doesn't matter.

Christoph Mangelsdorf
17. June 2026 07: 40

Xbox dominates once again.

Andreas Schmittfull
17. June 2026 06: 05

Part 1 was 12/10, outstanding. Part 2 was more like 4/10.

Marcel Strothmann
17. June 2026 04: 20

Lu Fri Claire Obscure is not a studio that MS has acquired.

Torsten Lehr
16. June 2026 16: 56

Dominic Pogroszelski, you go back to playing with your Wix box.

Christian Michael Leven
17. June 2026 02: 13
Reply to  Torsten Lehr

Torsten Lehr, you look like a grown man. What exactly offended you so much that you're still acting like a primary school child?

Christian Kneier
16. June 2026 14: 24

Paul-Vincent Poppe, ah, I see, that's the kind of person you are… but be careful that no one finds the red and white flag with the black cross in the middle at your house. 😉

Paul-Vincent Poppe
16. June 2026 14: 14

Christian Kneier: I don't want any faggot, feminist, or other degenerate propaganda in my games. Any studio with a faggot flag must be destroyed.

mischmasch77
16. June 2026 23: 21

What a sophisticated tone…

Patrick Barker
16. June 2026 15: 14

Walking Sim for the poor.

Dominic Jochen Denk
17. June 2026 10: 00
Reply to  Patrick Barker

Patrick Barker not really, but okay, playing him himself would be a hit.

Michael Brandl
16. June 2026 13: 19

I didn't like the Hellblade games either.

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