XBOX is in the middle of a restructuring process, and it has brought radical changes to its business. This morning, the company confirmed a new round of layoffs and a complete reorganization of its studios. It also shared an update on what has happened with the studios that stopped being part of XBOX Game Studios months ago.

In case you don’t remember, the layoffs last July caused Ninja Theory, Compulsion Games, Undead Labs, and Double Fine to stop being XBOX studios. After looking for opportunities in the industry, most of them are already working on new projects; however, luck has not been on Ninja Theory’s side, as it could shut down after several negotiations failed.

Ninja Theory Is on the Brink and Could Shut Down Soon

Matt Booty, head of content at XBOX Game Studios, shared a statement announcing the elimination of 268 positions across the organization. This will particularly affect Halo Studios, as Master Chief will now be in Activision’s hands. In addition, several studios will merge to reduce the number of business units and improve management.

The executive also revealed what has happened with the teams that recently left XBOX. He confirmed that Compulsion Games and Double Fine regained their independence, as well as control over their franchises.

Meanwhile, Undead Labs also successfully completed the process, and State of Decay 3 will be in the hands of a new publisher that has not yet been revealed. Booty reaffirmed that, despite the end of their relationship, the survival title is still planned for XBOX Game Pass as a day-one release.

There is also bad news, as Ninja Theory is at risk and could shut down. XBOX confirmed that 2 deals to save the Hellblade studio failed. As a result, the company and XBOX executives are discussing a proposal to shut it down.

“Unfortunately, two separate deals for Ninja Theory did not come together. We will now begin consultations with employees regarding a proposed closure, while we continue exploring other alternatives,” Booty said.

Although the studio is still alive for now, it is very likely that it will close its doors. This would mean the cancellation of Senua, a title that was revealed during this year’s Xbox Games Showcase. Finally, XBOX confirmed that Arkane is still in negotiations to determine its future and that we will probably know more about it by the end of the year.

Hellblade Senua

XBOX Planned to Shut Down Ninja Theory Before the Reveal of Senua

Ninja Theory has an opportunity to save itself, but it seems like it will be the last one. According to reports, XBOX had planned to shut down the studio just before the reveal of Senua, whose presentation had a single goal: to attract investors’ attention in order to find a potential buyer for the studio.

XBOX became interested in the developer following the impact of Hellblade: Senua’s Sacrifice. Sources claim that Microsoft invested nearly $100 million to acquire the studio in 2018, but this was not reflected in profits due to the failure of projects such as Bleeding Edge and the cancellation of Project: Mara.

On the other hand, sales of Senua’s Saga: Hellblade 2 did not meet Microsoft’s commercial expectations, which forever shaped Ninja Theory’s future.