Report: Ninja Theory lays off workers after failing to spin off from Xbox
gamedeveloper.com Oct 6, 2026

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

AI-summarised brief · reviewed before publication

Ninja Theory, the studio behind Hellblade and the upcoming Senua title, announced layoffs after Microsoft’s Xbox Game Studios failed to secure a buyer or independent status for the company. The developer, acquired by Microsoft in 2018 for $117 million, has been part of a broader Xbox “reset” that cut 3,200 jobs across the division. While Undead Labs successfully spun off, attempts to divest Ninja Theory collapsed, prompting the studio to reduce staff. Employees on LinkedIn reported job risks, with no specific number of positions disclosed. The move signals a shift in Microsoft’s first‑party strategy.

💡 Why It Matters

  • · The layoffs underscore Microsoft’s tightening focus on core first‑party titles, potentially reshaping the future of high‑profile IPs like Hellblade.