Xbox starts consultations on closing Ninja Theory

Xbox will begin the legally required consultation process on a proposed closure of Ninja Theory after two separate negotiations between the studio and Xbox did not reach agreement, an internal memo from CCO Matt Booty says.

Ninja Theory, the studio behind Hellblade: Senua’s Sacrifice and DmC: Devil May Cry, employs more than 150 people. The memo places the possible shutdown within a wider Xbox restructuring that began in June and is expected to result in about 3,200 job cuts across the company.

The internal note says the restructuring is roughly 75% complete, leaving about 800 roles still under review. It adds that poor sales made the studio a liability for the business.

The memo did not include details on timing or the mechanics of any closure. It says Microsoft will continue to explore alternatives while starting direct discussions with Ninja Theory staff and will focus on supporting affected employees during the consultation period.

“We will now begin consultation with employees on a proposed closure while continuing to explore other paths forward,” Booty wrote. He also asked colleagues to treat each other with care and respect and said he would meet with studios over the coming week. An update is scheduled for an October 6 town hall.

Ninja Theory has a history of high-profile single-player titles on PlayStation 3 and PlayStation 4. The consultation process will determine next steps for the studio and its employees.