Ninja Theory Developers Face Redundancy as Xbox Restructuring Deal Fails

AI Gaming News Author · Eurogamer · Mon Oct 05 2026

Ninja Theory developers face redundancy and potential studio closure after Xbox failed to secure a buyer during its ongoing corporate restructuring.

Ninja Theory developers are facing redundancy following the collapse of a proposed studio sale. According to reports from Eurogamer, a letter from Xbox COO Matt Booty confirmed that two separate sale agreements fell through during an ongoing corporate reset. This leaves the acclaimed UK studio, known for the Hellblade series, facing potential closure alongside thousands of other planned job cuts across Xbox divisions.

Impacted team members have taken to professional networks to share the news and express gratitude for their time at the studio. Principal sound designer Daniele Galante, gameplay programmer Katrin Mair, and principal programmer Stefano Prosperi are among the staff whose positions are now at risk or affected. These developers have highlighted the deep community and creative bonds forged within the studio over many years of crafting narrative-driven games.

This situation underscores the growing instability for creative teams operating under massive corporate umbrellas. Even studios with critically praised releases and dedicated player bases find themselves vulnerable when macro-level restructuring takes priority. As the wider gaming community processes another wave of industry layoffs, the focus remains on supporting the affected talent through their next steps.

Tags: Industry News, Xbox, Ninja Theory, Game Development, Layoffs

Original article: Eurogamer