Ninja Theory employees have begun reporting redundancies and job losses, but Xbox has not confirmed a final studio closure or a total number of affected staff. Xbox said two proposed agreements for the studio fell through and that it would consult employees on a proposed closure while continuing to explore other options.
What happened at Ninja Theory?
In an employee update published by Xbox Wire on September 22, 2026, Xbox Game Studios head Matt Booty said: “Unfortunately, two separate agreements for Ninja Theory fell through. We will now begin consultation with employees on a proposed closure while continuing to explore other paths forward.” Xbox Wire’s statement describes a proposed closure and consultation, not a completed studio shutdown.
On October 5, Video Games Chronicle (VGC) reported that several Ninja Theory developers had posted on LinkedIn that they were facing redundancy or had already lost their jobs. VGC named nine employees and their roles:
- Alessio Mellina, technical sound designer
- Katrin Mair, gameplay programmer
- Xoe Subari, PCap tech staff
- Loong-Wei Ding, technical director
- Matteo Tummino, sound designer
- Matt Le-Fevre, senior technical artist
- Pietro Berto, character artist
- Justin Pedersen, technical artist
- Daniele Galante, principal sound designer
Those are individual reports identified by VGC, not a confirmed count of all employees affected. Xbox has not announced a Ninja Theory-specific redundancy total.
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How the ownership plan changed
On July 6, 2026, Xbox CEO Asha Sharma said Ninja Theory and Undead Labs had “entered terms to join new ownership with funding to complete and grow Senua and State of Decay 3.” That was an announced plan, not a completed ownership transfer. Xbox later said the two agreements for Ninja Theory had fallen through. Sharma’s July update also described wider Xbox role eliminations, but did not give a Ninja Theory-specific figure.
The September update said Compulsion Games and Double Fine would return to management with their intellectual property, back catalogs and runway funding. Xbox said Undead Labs transitioned on similar terms and would release State of Decay 3 day one on Game Pass. Ninja Theory’s outcome was still being explored rather than announced as a completed transfer or a finalized closure.
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What is known about Senua?
Senua was announced in June 2026 with a planned 2027 release. Xbox’s July ownership announcement had said the proposed new ownership would receive funding to complete and grow the game. After those agreements fell through, VGC reported that the game’s status had not been officially confirmed. As of October 7, 2026, there was no official confirmation in the cited reporting that Senua had been cancelled, would continue, or would meet its planned release window.
Do Xbox’s layoff totals include Ninja Theory?
Xbox’s broader job-reduction figures are not a measure of Ninja Theory redundancies. On July 6, Xbox said it expected approximately 3,200 role eliminations throughout FY27, including approximately 1,600 at that time. On September 22, it announced 268 role eliminations across Halo Studios, other first-party studios, and Xbox Game Studios management and central functions. Neither figure was identified as a Ninja Theory count. The Washington Post also reported the 268-role portfolio-wide announcement and summarized the Ninja Theory ownership update: The Washington Post’s report.
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What remains unresolved?
The public statements and reporting cited here do not identify the parties to the two failed agreements, explain why negotiations ended, or establish the final status of the studio or Senua. Xbox said it would continue exploring other paths while consulting employees. The employee reports indicate redundancies had begun to surface publicly, but they do not establish how many people will ultimately be affected.
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