Hellblade Studio Potentially Shutting Down After Prior Agreements Fall Through

Xbox has begun consultation with the studio's employees on a "proposed closure", though it's also looking at "other paths forward."

Posted By | On 22nd, Sep. 2026

senua's saga hellblade 2

If it weren’t bad (or good, depending on what you think of its work) enough that Halo Studios has been heavily impacted by Xbox’s studio reorganization, Ninja Theory (Hellblade) fame is seemingly in the process of shutting down.

While it had reached an agreement to separate from the division, Xbox chief content officer Matt Booty said that “two separate agreements” with the developer had fallen through. As such, it’s now beginning consultation with employees on a “proposed closure” while also exploring “other paths forward.”

As previously reported, Compulsion Games and Double Fine Productions have gone independent and have full control of their IP and back catalogue. You probably noticed this with the latter’s critically acclaimed Keeper launching on PS5 recently. Undead Labs is also with a new publisher, and State of Decay 3 will still launch on day one for Game Pass, despite previous rumors indicating potentially otherwise.

Unfortunately, there are no updates on Arkane Studios, aside from consultation still being “underway” until the year is up.

Interestingly, Booty said he will be spending time with Xbox’s studios next week and that a town hall on October 6th would see them reflecting on “our progress” while looking “ahead to one of the strongest game lineups in our history.” How those at Ninja Theory are supposed to feel, knowing that Senua, its third title in the series, won’t be a part of it.


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