Microsoft Reportedly Knew of Ninja Theory Closure Plans Before Senua Announcement
Microsoft reportedly had plans to close or spin out the game studio Ninja Theory prior to its announcement of the new Hellblade game, Senua, at the Xbox Games Showcase ten days ago. According to a report by Stephen Totilo's Game File, the company's strategy was to use the new game announcement to generate investor interest for a potential acquisition or separation of the studio. It remains unclear whether Ninja Theory's leadership was aware of these internal plans.
Reports suggest that Microsoft was aware of its intentions to close or spin out Ninja Theory before the studio unveiled its new Hellblade title, Senua, during the Xbox Games Showcase approximately ten days prior. This information comes amidst broader reports of Microsoft's plans to close or divest from several studios, including Compulsion Games and Double Fine.
Stephen Totilo's Game File indicates that Microsoft "had already planned to sunset or split" with Ninja Theory by the time Senua's trailer debuted. The strategic aim was reportedly to "draw investor interest" with the announcement of a new game. However, it is not clear if any members of Ninja Theory's leadership team were involved in or informed of this specific plan.
This development occurs against a backdrop of significant restructuring within Xbox. Xbox CEO Asha Sharma issued a "reset" memo, noting that while Xbox has invested over $20 billion, its annual revenue has declined by almost half a billion dollars during the same period. Sharma stated that "this cannot continue." Following this, Xbox Game Studios boss Craig Duncan stepped down from his position.
Ninja Theory, Double Fine, and Compulsion Games are reportedly in discussions with Microsoft regarding potential buyouts. For these studios to become independent, they would require substantial investment. A key concern for Ninja Theory is whether it would be permitted to retain the Hellblade franchise if it were to separate from Microsoft. A precedent exists from the closure of Lionhead, where despite investor interest, talks failed as Microsoft was unwilling to relinquish the Fable brand name.
While the future for the studios facing closure remains uncertain, Microsoft is reportedly exploring options for investors to acquire them rather than proceeding with complete shutdowns. Only time will tell if this approach proves successful. (Source: GameSpot)
