Last week, Bloomberg reported that Microsoft layoffs were on the table, and now, it has been revealed that Xbox is targeting a few studios with which fans feel a solid connection.
According to The Verge, Ninja Theory is set to close, but there’s still time to go independent or find a buyer before the deadline looms. It comes after Xbox issued a reset memo, talking about trimming the fat, with Microsoft’s year-over-year profit margin only at 3%. That’ margin factors in Activision offsetting some of the revenue streams that its other studios are failing to tap into.
It also, surprisingly, comes after the Xbox Direct, where Ninja Theory revealed its next Senua game, set for 2027. The UK studio created a great first game, with the second garnering mixed reactions. The third one had some living up to do, and could be in jeopardy.
However, if Xbox budgets are increasing, and the sales and price data are not following, then these ‘reset spots’, or ‘efficiencies’ are the type that Xbox leadership is watching like a hawk. Ninja Theory has alternative revenue streams, too. The studio has one of the most state-of-the-art production studios, especially in the UK, which offers another revenue stream for the studio outside of just sales. It could also make it an attractive proposition for a potential buyer.
Microsoft previously acquired Ninja Theory in 2018, after its release of Hellblade: Senua’s Sacrifice in 2017. The studio previously developed games like Heavenly Sword, Devil May Cry, and other recognizable titles prior to its Microsoft purchase. It will be interesting to see where Ninja Theory goes if it can get a buyout, alongside potential the potential sale of Compulsion (who develop We Happy Few and South of Midnight), and Double Fine, the Psychonauts devs.
Authored by
Craig Robinson
Craig Robinson is an experienced gaming and esports writer with nearly a decade of coverage experience since 2015. With a background in software engineering, he combines his journalistic expertise with a strong understanding of technical SEO and web development fundamentals. He’s passionate about covering MMO games, competitive esports, and crafting guides that help players get the most out of their favorite titles.
He's been writing about gaming and esports for over 10 years, which started as for fun project during university. He has since developed his skill set, contributing to newsrooms coverage of key games and event, and blending evergreen content strategy and a solid grasp of content marketing fundamentals. His work has appeared in Esports News UK, Gamer Guides, theEscpaist, and VideoGamer, and he now contributes to Gamehub's review team. When he’s not writing, Craig can usually be found running, at the gym, or tinkering with coding projects to keep his GitHub active.
Dead by Daylight has marked its 10th anniversary in style, with Behaviour Interactive hosting a fan event in Montreal's Old Port over the weekend before taking to the stage to…
