Microsoft had already planned to close Hellblade studio Ninja Theory before they revealed their latest game, according to reports, as fears of widespread Xbox layoffs mount.
Xbox Revenue Decline Sparks Layoff Fears
After Xbox CEO Asha Sharma announced revenue for Microsoft's gaming division has sharply declined over recent years, there has been an expectation of imminent layoffs across the company. Evidence of incoming cutbacks started to trickle out this week, as two senior Xbox executives abruptly departed Microsoft on Monday, followed by reports that multiple Xbox studios are facing closure.
While Microsoft has not confirmed what studios have been affected, more context has emerged around one of the developers reportedly in the firing line: Ninja Theory.
Senua Reveal Was a Calculated Move
Of all the studios potentially facing closure, Ninja Theory is the most surprising considering the studio revealed their new game, Senua, during the Xbox Games Showcase earlier this month. However, according to a new report, this was a calculated move.
According to Game File, Microsoft had already planned to 'sunset or split with' Ninja Theory prior to Senua's reveal. It is claimed the announcement was intended to help draw investor interest in the studio prior to the split.
While this could be interpreted as Microsoft throwing Ninja Theory a bone to help secure a new buyer for the studio, as noted by Game File, it is unclear if anyone within the studio was aware of this plan. Xbox could have been stringing Ninja Theory along under a false pretence, knowing full well that Senua may never see the light of day.
Odd Circumstances Around Senua's Reveal
If this report is true, it tracks with some of the odd circumstances around its reveal. Despite Xbox's pivot back to exclusive games, Senua was announced as a multiplatform title across PlayStation 5, Xbox Series X/S and PC. That is despite Xbox execs claiming that one of the reasons Gears Of War: E-Day and Clockwork Revolution are console exclusives is because they had not previously announced a PlayStation 5 version.
Additionally, despite being the third title in the Hellblade series, the naming convention has changed to 'Senua' – which could be due to IP technicalities or, if we are being less cynical, due to its action-focused slant in comparison to previous titles.
More Layoffs Expected
Either way, there is an expectation that things are only set to get worse. According to insider NateTheHate, the layoffs at Xbox will only accelerate in the coming weeks.
'And things still are not over,' the insider wrote on ResetEra in response to the reported studio closures. 'Expect more blood to be spilled by [Microsoft] in the coming days/weeks.'
NateTheHate, who has a good track record when it comes to Nintendo leaks, does not specify any other studios potentially at risk, but Bloomberg's Jason Schreier previously mentioned Compulsion Games, Double Fine, and Ninja Theory as being under threat and intimated that none were safe from layoffs, if not closure.
