Xbox Reportedly Closing Ninja Theory Studio

Xbox is closing down Ninja Theory, the studio behind the Hellblade series, a source tells The Verge. Staffers were told on a call on Monday about the closure, but they are hoping the studio will find a buyer. The closure comes as “several” Xbox studios at Microsoft, including Compulsion Games and Double Fine, are in “active negotiations” about spinning off, Bloomberg reports.

The closure and negotiations follow Xbox CEO Asha Sharma and chief content officer Matt Booty warning last week of a “reset” at Xbox, laying out several challenges facing Xbox’s business — including that it had “over extended” with its studio system and the hardware component crisis is significantly driving up prices. Kotaku reported earlier on Monday that Microsoft was planning to shut down Compulsion, though it noted in an update that studio leadership was in “negotiations” with Microsoft.

Sharma has made many major decisions since taking over at Xbox in February, including locking down Gears of War: E-Day and Clockwork Revolution as Xbox console exclusives in an announcement at its Xbox Games Showcase just over a week ago. During that event, Microsoft also revealed a new Hellblade game, Senua, and its future with this change is unclear.

Xbox didn’t immediately reply to a request for comment.