For the past month or so, we’ve been hearing countless talk surrounding Microsoft and its plans for Xbox, with leaks and rumours suggesting that studios could be shut down, games might be cancelled and Xbox overall could be in a very different place. Finally, Microsoft has broken its silence, confirming that nearly 5000 jobs across the company will be cut, with the likes of Double Fine and Compulsion Games now going independent.

As obtained by the publication The Verge (paywalled), Xbox CEO Asha Sharma recently sent a memo to employees addressing all of the rumours and giving a concrete idea of what’s in store for Xbox, writing:

“We are beginning the most significant restructure in XBOX history. After careful consideration, I’ve made the difficult decision to reduce our team by approximately 3,200 throughout FY27. This will include approximately 1,600 role eliminations today.”

In terms of what will become of Xbox’s many studios, Sharma finally offered clarity, adding: “Compulsion Games and Double Fine Productions will return to management and transition to independent studios with their IP, catalog, and runway for their next games.”

Other studios are set to be impacted differently, with Sharma revealing that “Ninja Theory and Undead Labs have entered terms to join new ownership with funding to complete and grow Senua and State of Decay 3. In France, Arkane’s management is beginning required consultation with its Works Council to review potential strategic options.”

The full memo is rather lengthy, and covers all manner of topics from Xbox’s current business costs, the structure of the company, new appointees and more. Regardless, while this latest news is far from positive, it could have been even worse.

Hopefully Double Fine, Compulsion, Undead Labs, Ninja Theory and Arkane are all able to thrive under these new conditions.

Discuss on our Facebook page HERE.

KitGuru says: What do you think of this latest decision? Is it the best-case-scenario given the circumstances? Let us know down below.

Following Microsoft’s recent Xbox Games Showcase, there have been a number of leaks from across the board claiming that the console maker is planning some pretty brutal cuts, with multiple internal studios potentially set to be shut down. While they have yet to officially comment on the matter, Microsoft have now spoken on other matters instead, confirming that they will be present at the upcoming Gamescom in August.

Taking to social media to make the announcement, Xbox confirmed that they will make their presence known during Gamescom 2026, writing:

“XBOX + gamescom + FanFest… see you there. Be among the first to play what’s next – including the Gears of War: E-Day campaign. Stay tuned for more.”

While exciting to some, the post has seen some backlash, with users pointing out the ill-timing of the announcement alongside the fact that they have yet to address the elephant in the room – that being the impending and expected studio closures.

This is doubly so the case when considering the fact that the likes of Ninja Theory are reportedly on the chopping block despite literally announcing a brand new game during the most recent Xbox showcase.

All-in-all, it seems as though Microsoft have no plans to alter their current marketing in the wake of these ongoing rumours. It will be interesting to see what exactly occurs between now and when Gamescom goes live on the 26th of August.

Discuss on our Facebook page HERE.

KitGuru says: What do you think of this most recent announcement? Should Microsoft have read the room? Let us know your thoughts down below.

We were all a bit confused when we learned that Ninja Theory was on the chopping block at Xbox. The studio had only just revealed its next game at an Xbox Games Showcase earlier in the month. Now, it would seem that the trailer was only shown to try and attract a potential buyer for the company. 

According to Stephen Totilo of Game File, Microsoft already had its plan in place to shut down Ninja Theory when the new game was announced. The source claims that “the thinking was that the promise of a newly announced game would draw investor interest”.

Right now, it is unclear if Ninja Theory itself was aware of this plan, or if it was a move on the Xbox corporate side. It is also unclear if the strategy worked, but we can at least assume that Ninja Theory will keep the Hellblade IP if it does split off from Xbox.

The new Hellblade game, simply titled Senua, was set to be a new action-focused game in the series. While Hellblade 2 was well liked, it was highly linear and had fewer gameplay sequences than the original. Based on the teaser trailer alone, it looked like Senua would be a bit more like the original game rather than the sequel.

KitGuru Says: There has still been no official announcement on Ninja Theory yet, but it shouldn't take much longer for that to happen. The news about Compulsion and Double Fine has also leaked well in advance at this point. 

The news broke this week that Xbox is planning to close several of its game studios. Now, according to an updated report from Jason Schreier, several of the studios in question are in active negotiations to buy themselves out, including Compulsion Games, Double Fine and Ninja Theory.

There had also been rumours that Arkane could be hit by the closures, but Shreier's report only mentions Compulsion, Double Fine and Ninja Theory. According to the report, all three of these companies are in “active negotiations” to avoid closure, but if they can't come up with a buyer, or stump up the cash to go independent, then they'll end up shutting their doors. Even if they do succeed in avoiding closure, it is claimed that all three studios would likely undergo significant layoffs as a result.

The news of Ninja Theory facing closure is particularly surprising, as they just announced a new Hellblade game, simply titled ‘Senua', at the Xbox Games Showcase earlier this month, with a release date set for 2027. It is unclear if Senua is being cancelled or if Xbox still plans on releasing it.

It wouldn't be the first time that Xbox has cancelled a major game shortly after its reveal though, Phantom Dust was infamously cancelled shortly after being announced as an Xbox One exclusive during the console's first couple of years on the market.

While Double Fine had some success with Psychonauts 2, the company has not had a sales hit since, while also being one of the more expensive studios to run due to it being based in San Francisco. Compulsion Games has also struggled to find sales success with its most recent release, South of Midnight.

These changes are expected to be part of a wider restructuring at Xbox, which has already involved several studio closures in recent years.

KitGuru Says: It is disappointing to see more studio closures happening, but the cost of running even small studios has ballooned dramatically at this point.

Update 15/06/2026: A report from The Verge claims that Ninja Theory is being shut down by Xbox, and that the next-best hope for the studio's future would be for it to find another studio to acquire it. The report reiterates that Compulsion and Double-Fine remain in negotiations to spin-off as independents, though that is seemingly not an option for Ninja Theory. This comes a little more than a week after Ninja Theory revealed the next entry in its Hellblade series, Senua, a game that we may never get to play, if the studio is ultimately shuttered. Original Story: The scale […]

Read full article at https://wccftech.com/xbox-studios-negotiate-buyout-to-avoid-closure-compulsion-double-fine-ninja-theory/

One of the biggest announcements during Microsoft’s Xbox Games Showcase was the official unveiling of Senua – the 3rd entry in Ninja Theory’s Hellblade series. While a welcome surprise, many fans were then wondering what has become of the studio’s previously-teased Project Mara. Unfortunately, according to the team, they “took the decision to not work on that any further.”

Taking part in a lengthy interview via the Xbox Wire blog, Ninja Theory’s studio head Dom Matthews was asked about the upcoming Senua, their reasons for not going with the title Hellblade 3 and the renewed focus on combat and gameplay.

In amongst these discussions, Matthews took time to speak on Project Mara. For the uninitiated, this was pitched back in 2020 as a horror experience focused around “real-world and grounded representation of mental terror”. At the time, Ninja theory shared two teasers: one being a more traditional sneak peek and the other being a developer diary.

Unfortunately, Project Mara has since been scrapped, with Matthews confirming “with the fact that we have the entire team working on [Senua], I suspect some people might ask what’s happened to Project Mara […] I took the decision to not work on that any further.”

Matthews continued, “These decisions are never easy, but I did so to take the opportunity to have all of the talent and expertise in the studio, all 85 creatives, working together to realize the potential of what Senua can be.”

While a disappointing conclusion, hopefully this does mean that Senua will represent Ninja Theory’s best work in a decade (at the very least on the gameplay front).

KitGuru says: What did you think of Project Mara back when it was first announced? Are you disappointed in its cancellation? Do you have high hopes for Senua? Let us know down below.

All the way back in 2019, Microsoft kicked off the announcements for this current generation with a teaser for Senua’s Saga: Hellblade 2. Finally launching many years later in 2024, the sequel was met with a somewhat mixed reception owing to its relative lack of gameplay. The team at Ninja Theory seem to have taken this feedback to heart, officially unveiling ‘Senua’ alongside what appears to be tons more gameplay opportunities.

Making the surprise announcement during Microsoft’s recent Xbox Games Showcase, Ninja Theory officially showed off Senua.

The 3rd entry in the studio’s Hellblade series, this upcoming 2027 title is described as “a new action-adventure set in the Hellblade universe” in which “Senua, a Celtic warrior, is trapped between life and death in a fractured vision of purgatory. She must fight to reach the afterlife and reunite with those she loved and lost, battling forces that threaten everything she believes in.”

While it is too early to tell, the trailer shared does seem to show off plenty more gameplay opportunities when compared to the previous entries, including moments of stealth, more free-flowing combat and what appears to be dynamic enemy placements.

This matches previous rumours from earlier this year, in which it was claimed that a new Hellblade game was in development with a focus on being “a bit more interactive than Hellblade 1 and 2.”

Of course, we will have to wait for a bit more of a concrete look at gameplay before coming to any conclusions, but it seems as though Ninja Theory have taken feedback from Senua’s Saga and will be doubling down on gameplay for this upcoming entry.

Senua officially comes to Xbox Series X/S, PlayStation 5 and Steam sometime in 2027.

Discuss on our Facebook page HERE.

KitGuru says: What did you think of the Xbox Games Showcase? Were you expecting a new Hellblade game to be announced? Did Hellblade 2’s visuals-first approach bother you? Let us know down below.

Perhaps the biggest surprise of the Xbox Games Showcase 2026 was the unveiling of Senua, an action/adventure game centered on the protagonist of the Hellblade series. In an Xbox Wire blog post, Ninja Theory says the game follows on from Senua’s Saga: Hellblade II, but it is intentionally a different kind of experience and should not be treated as Hellblade III. Unlike the previous two Hellblade titles, this is an out-and-out action/adventure. The studio's goal is to keep the intimate storytelling, high production values, and emotional tone that defined Hellblade, while expanding the scope into a broader action-adventure framework. That means deeper […]

Read full article at https://wccftech.com/ninja-theory-senua-action-adventure-hellblade-ii/