Microsoft confirms it will proceed with the proposed closure of Ninja Theory, the UK studio behind the Hellblade series, after acquisition discussions fall through. Xbox executive Matt Booty says two separate agreements for the studio do not proceed, and the company will begin consultation with employees regarding the closure.

The outlets report the announcement follows a broader wave of Xbox job losses, with Metro framing the move as part of continuing cuts. Pushsquare and GameSpot add context that Ninja Theory was previously expected to be acquired, similar to Microsoft actions around other studios, but negotiations ultimately fail. GameSpot also notes that Microsoft’s process includes “consultation with employees,” which aligns with UK requirements and does not necessarily mean immediate shutdown.

Across coverage, the main differences are emphasis and timing. Some reports foreground the acquisition angle, while others focus on the broader restructuring of Xbox studios. All describe the same underlying outcome: Ninja Theory enters a formal consultation period after two acquisition talks collapse.