News has emerged via the international media outlet The Verge that Xbox is shutting down Ninja Theory, the developer of the Hellblade series.

Founded in 2000, Ninja Theory was acquired by Xbox in 2018 and became an internal studio. The developer is known for titles such as Kung Fu Chaos, Heavenly Sword, and DmC: Devil May Cry. After joining Xbox, it gained global recognition for the Hellblade series.

According to The Verge, Xbox reportedly notified employees of the studio's closure via phone. This decision is seen as an extension of the Xbox business restructuring currently being led by Asha Sharma, who recently took office as CEO of Microsoft Gaming. In a recent address marking her first 100 days, CEO Sharma reviewed her progress and current challenges, noting that "the current structure is unsustainable given the ongoing decline in annual revenue," while hinting at the possibility of studio closures and layoffs.

What makes this news particularly shocking is that it comes less than a week after Ninja Theory unveiled its new title, 'Senua.' During the Xbox Game Showcase held on the 8th, Microsoft premiered the new Hellblade entry, 'Senua.' The trailer had built significant fan anticipation by showcasing a shift from the 1-on-1 combat of previous titles to battles against multiple enemies, along with enhanced exploration and puzzle-solving elements.

Despite the excitement surrounding 'Senua,' the future of the game has become uncertain following the news of the studio's closure. The industry is now watching to see if Ninja Theory can find a new owner and whether 'Senua' will be able to see the light of day as planned.