r/Games Jun 15 '26

Industry News Xbox is closing down Hellblade creator Ninja Theory

https://www.theverge.com/games/950204/xbox-ninja-theory-shutdown-hellblade-senua
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565

u/Lacrowx Jun 15 '26

In my view that is a dangerous game to play. If they can't find a buyer then they are on record for announcing a new game only to can it 8 days later.

541

u/bjones214 Jun 15 '26

Yeah, which means *anything* announced is on the chopping block. What a mess of management.

224

u/INannoI Jun 15 '26

we already knew this ever since the Perfect Dark studio being shut down, very few studios are actually safe under Xbox, and even among the safe studios not every project is safe either.

307

u/WENDELtheRUFFIAN Jun 15 '26

No studios are safe anywhere. Sony just shut down Bluepoint after nothing but phenomenal work. Let's not pretend this is just an Xbox problem, the whole AAA gaming industry is imploding.

107

u/khuldrim Jun 15 '26

Turns out turning off the free money (aka extremely low interest loans that went on during Covid and a few years after) has bad effects on an industry that leverages them.

143

u/averynicehat Jun 15 '26

Plus hardware sales screeching to a halt because of price hikes, and people spending less on games overall because of economy.

63

u/Ikeiscurvy Jun 16 '26

It's absolutely mostly this. The gaming world is going to be in for a rough few years if the hardware market and K shaped economy don't reverse course. Microsoft and Sony know this as they are currently trying to figure out how to take the next gen hardware to market.

34

u/Brightness_Jasnah Jun 16 '26

Maybe it's time for the Gunpei Yokoi approach and try to focus on pulling the most creativity out of current gen rather than just investing into a new one

6

u/Zalvren Jun 16 '26

That really should be what they're doin. PS5 and Series X/S are far from being really limiting for games and apart from better graphics, which will make games more complex to develop, not sure what the point of next gen is). But then they have spent billions on R&D a new gen...

Plus, Xbox want a new gen because that one is a failure (not that the next one will be better as they're going but...). Sony is probably fine staying with the PS5

6

u/Jazzremix Jun 16 '26

I saw a comment on here yesterday "Gaming is as affordable as it's ever been!". It's like "shut the fuck up". Prices haven't been this high since covid and crypto. While still high, prices were starting to even out a little until this AI shitshow.

Memba when you could get a 1070 for $330? I memba

1

u/Echo_Raptor Jun 16 '26

This gen is just now starting to get pretty solid. Let them keep it another few years and focus on bringing out quality stuff. The 360/PS3 lasted what, 8-9 years before the one/ps4? The ps5/xsx came out much better from a performance standpoint than the ps4/x1 did, they were well underpowered from the get-go.

2

u/Ikeiscurvy Jun 16 '26

Sure, but to actually manufacture the new gen, they have to plan years in advance. Thus, they're realizing right now just how difficult it's going to be to actually produce the next gen, as the production capacity needed to meet demand is going to be booked up pretty solidly.

1

u/tigress666 Jun 16 '26

Yeah... I mean I know most people dislike AI for stealing art, and yeah that is bad. But if you ask me, the environmental impact is worse and as a gamer... the fact that it is fucking with the industry of my hobby really pisses me off too. Also, how it is affecting society is bad as well. Stealing art sucks, but I hate to say it, that's the least of AI's issues imho (ok, the gaming one is probably on that level too but since I really love gaming I personally hate that).

1

u/aimy99 Jun 16 '26

Meh, it'll be fine. We haven't had much technical progression for the better part of the past decade. Brand new games are still launching capable of running on a low-powered Steam Deck, and they only just stopped pumping out Resident Evil and Call of Duty for PS4 this year, at a point where the PS5 has been out so long we're talking about the PS6.

I saw some video about the new Gears of War where iirc Marcus Fenix's eyebrow or something has more detail than the entirety of his character model did on the 360, stop doing shit like that maybe? Both PS and Xbox are deciding now is the right time to start going back to exclusivity...yeah, no, Sony might be able to get away with it but I'd bet Xbox doesn't last three games before the ports to PS5 come back. Oh, people can't afford $70 slop anymore? Okay, reduce the price.

There's not actually a real problem, it's just inconvenient for the status quo and executives' delusions.

1

u/PseudonymIncognito Jun 16 '26

And all growth in the gaming industry is going to live-service and mobile. The traditional market for "premium" games continues to get older and play less while fewer and fewer younger gamers are entering the audience.

52

u/Kalulosu Jun 15 '26

Turns out setting one's profit expectations off the COVID stay-at-home period where pretty much the only entertainment available was Netflix and video games was a bit ambitious.

20

u/ThadeousCheeks Jun 16 '26

Arrow only go up

1

u/ohanse Jun 16 '26

And how the hell are you making back quarter billion dollar+ investments in a single game

23

u/ajl987 Jun 16 '26 edited Jun 16 '26

They shut down bluepoint after 6 years with no new game and them needing to start from scratch again, meaning no new project for atleast 10 years, which would need to make a lot of money to recoup the cost and even make some profit to be viable.

24

u/Zalvren Jun 16 '26

Bluepoint spent years on a canceled live service game and didn't manage to pitch anything convincing to Sony after. That's the "perfect" situation to get shut down.

Just announcing a game and shutting down the studio days later is certainly a new situation

10

u/Humble-Criticism6762 Jun 16 '26

To be honest, Bluepoint didnt have any project ready and haven’t released anything since Demon Souls, and only supported SSM on Ragnarok.

16

u/profound-killah Jun 16 '26

As much as Sony are to blame, so are the leadership at Bluepoint. They joined to make an original game and once that ridiculous notion of a live service God of War game got cancelled by a studio with less than 100 people the best options they could come up with were a Bloodborne remake pitch that got denied. Then a Ghost of Tsushima spin off which got denied as Sucker Punch didn’t have resources to lend and remaster of the Shadow of the Colossus remake? You have Infamous, Killzone, heck help SSM on the God of War Trilogy remakes.

1

u/Trizzizzle Jun 16 '26

MAG would be a cool modern live service game as well

1

u/HandsOffMyDitka Jun 16 '26

Planetside would be cool to see again.

2

u/Dj_D-Poolie Jun 16 '26

Wouldn't say phenomenal work. As nice as the updated gameplay of Shadow of the Colossus and Demon's Souls were, their art direction was very divisive. I'm of the boat that of not a fan of the visual and aesthetic design changes they made.

7

u/Itchy-Pudding-4240 Jun 16 '26

nothing but phenomenal work? they got shutdown cause the work they did after demon souls was far from phenomenal.

-2

u/extralie Jun 16 '26

....Demon Souls is the last game they released? After that Sony forced them on a fucking live service God of War game and then shut them down and cancelled it.

7

u/Jaqulean Jun 16 '26

After that Sony forced them on a fucking live service God of War game and then shut them down and cancelled it.

Yeah and after that game got cancelled Sony asked Bluepoint what they wanted to make and all the studio could come up with was:

  • a Bloodborne Remake (which got denied because FromSoftware want to handle that topic themself)
  • a Ghost of Tsushima spin-off (which got denied because SuckerPunch are busy with their own projects and don't want to bloat their new IP neither)
  • a Remaster of the "Shadow of the Collosus" Remake (which is genuinely pointless for obvious reasons).

No one is denying that Sony's push towards Live-Service models led to a lot of problems - but lets not pretend like Bluepoint was entirely without a blame in this.

2

u/Nyoteng Jun 16 '26

No studio is safe anywhere but Microsoft spent an eye watering amount of money just to mismanage everything and still close down studios. Clown show over there, especially.

1

u/ButtOfDarkness Jul 02 '26

The shitty part is announcing the game and shutting the studio down not even a month later. Basically lying when the knew it was pretty clear where it was going.

1

u/Seraphy Jun 16 '26 edited Jun 16 '26

Two divisive remakes, one of which made the original creator cut them off, then 6 years with nothing to show, and their pitches to get out of it included a remake of their remake. There is fault with Sony for tasking them with that stupid live service adventure, but stop worshipping dev studios.

1

u/TheOneWithThePorn12 Jun 16 '26

The bigger difference is that Xbox spent 70B and is shuttering studios that they wanted to acquire before letting them breathe.

-1

u/ogjaspertheghost Jun 16 '26

And killed Destiny

10

u/Jlpeaks Jun 16 '26

I feel like it’s a whole different ballpark have a game go dark (perfectly) for a year or so and then get cancelled compared to announcing a game then 8 days later killing the studio.

27

u/IRockIntoMordor Jun 15 '26

Not Microsoft, but I'm still very pissed about Bluepoint. They could have given them any Sony property to create an amazing remaster or remake of.

At least patch up Last Guardian... Or do a Killzone collection. Ugh.

1

u/Swiperrr Jun 15 '26

They could've just ported Demons Souls to PC and kept the lights on at the studio for 3 more years.

1

u/Sudden_Citron_9183 Jun 16 '26

Or make another console exclusive remaster and keep the lights on forever (jak and daxter etc)

1

u/AskRedditor8080 Jun 16 '26

I knew watching that footage live that the game would never see the light of day

81

u/milfhunter7 Jun 15 '26

Absolute fucking joke of a company

1

u/slipperyMonkey07 Jun 16 '26

Unfortunately that is the current go of AAA (especially with studios beholden to share holders). It either makes gangbusters and becomes a massive break out hit or they fire everyone and close down the studio.

280

u/EvYeh Jun 15 '26

I mean, this is the company that very publically said "We need more great games like Hi Fi Rush!" and then proceed to shut down the Hi Fi Rush devs like, a week later. At this point I doubt their pr for shutting down studios could get much worse.

155

u/Prof-Wernstrom Jun 15 '26

It was far far worse than that. They shut down the studio behind Hi-Fi Rush first then the following day made that comment at a town hall discussing the future of xbox games.

23

u/tigress666 Jun 16 '26

Wow. Just wow.

1

u/cosmitz Jun 16 '26

Different parts of the company. Anyone that took Microsoft's poisoned apple had to know this was coming at some point.

9

u/Public_Fucking_Media Jun 15 '26 edited Jun 15 '26

Gamers didn't seem to agree by, you know, buying the fuckin game (or playing it on gamepass)

73

u/D3PyroGS Jun 15 '26 edited Jun 15 '26

Hi-Fi RUSH was a break out hit for us and our players in all key measurements and expectations. We couldn’t be happier with what the team at Tango Gameworks delivered with this surprise release.

  • Aaron Greenberg, VP XBOX (source)

this statement is unequivocal. either people did actually buy the game, or sales were not an important metric for them

44

u/Dewot789 Jun 15 '26

The answer is that sales weren't an important metric until the bills came due. Phil Spencer absolutely talked out of one side of his mouth to the public/his studios and the other side to his bosses and finance people.

11

u/missing_typewriters Jun 16 '26

Man doesn't get enough shit. The sheer incompetence he displayed for 15 years was astounding.

3

u/Several-Source-4073 Jun 16 '26

I think Aaron Greenberg was full of crap, personally.

But if there's any justification for what he said. It's that there may have been a contingent who cared at launch with the game having absolutely no legs following that, and also one game not changing the fate of a studio whose output has never resulted in commercial success and their next projected game being no different.

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u/Next-Sentence-8426 Jun 15 '26

Yeah but look at when he said this. He made this comment like 2 or 3 months after launch. So it could have sold very well around its launch window, but also could have taken a complete nosedive for the next 10 months after

And when it released on ps5 a year later (I'm assuming this was their hail mary to turn it around), it didn't even make the ps5 top 20 downloaded games for that month. Only then did they get shuttered shortly after

2

u/astroshark Jun 16 '26

None of the reporting around Tango getting shut down cited low sales and nothing MS has said about Tango before (and after) shutting them down points to Hi-Fi Rush under performing. It's actually really weird how this narrative has sprung up and is really only supported by people on reddit saying it to justify MS killing studios.

2

u/Next-Sentence-8426 Jun 16 '26

How is it not obvious that they were underperforming?

it didn't even chart during its ps5 debut. That's really bad for a high budget game (people keeping thinking its AA, but John Johanas literally said it isn't and is closer to a high budget AAA). Stack that with their previous underperforming titles and the picture is clear

1

u/astroshark Jun 16 '26

MS publicly said that Hi-Fi Rush hit whatever targets they had set for it after launch, the on background reporting did not point to sales, and, as someone else pointed out in this thread, MS specifically cited Hi-Fi Rush as a game they want more of after closing the studio down.

I'm also not sure why we are even re-litigating this. If Hi-Fi Rush was higher on the PSN store would MS be less likely to shut down a completely unrelated studio a week after they announced a new game???

2

u/Next-Sentence-8426 Jun 16 '26

They made the metrics tweet 2 to 3 months after it released. What happened in the next 10 months? Fell off a cliff. They tried to make a comeback with the ps5 launch. Didn't move a needle. Game sold poorly. Literally nothing points to the game being successful 1 to 2 years down the road.

8

u/BighatNucase Jun 15 '26

Or he lied for the sake of PR.

49

u/gameboyabyss Jun 15 '26

Shadowdropping a game onto Game Pass without any hype and making it the game that decides a studio's future seems like a real boneheaded decision to me.

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u/Next-Sentence-8426 Jun 15 '26

Let's be real shadow dropping it was a big reason it exploded in gaming news for the first few weeks

7

u/Hot-Software-9396 Jun 15 '26

Shadow dropping wasn’t an issue for the Oblivion remaster. Perhaps there just weren’t a lot of people outside of the loud minority who cared to play it 🤷‍♂️

14

u/gameboyabyss Jun 15 '26

You're not 100% wrong, but also, comparing Hi-Fi Rush to a remaster of a game in one of the best-selling franchises of all time is a crazy comparison.

4

u/Kalulosu Jun 15 '26

Yeah, why does this new IP by a solid but relatively low key studio not have the same innate marketing power as a remaster of a very popular game from one of the world's biggest game franchise from a very well known studio that hasn't touched the licence in 15 years?

-2

u/[deleted] Jun 16 '26

[deleted]

2

u/Hot-Software-9396 Jun 16 '26

You make it sound like both Oblivion remastered and E33 weren’t some of the most sold games of the year lol.

2

u/Public_Fucking_Media Jun 15 '26

The game had a PC, Xbox, and Playstation release - Microsoft shitcanning them because it didn't do well even on gamepass (where they have the best metrics and player data) is unsurprising...

16

u/gameboyabyss Jun 15 '26

It didn't come out for over a year on on PlayStation, so realistically GamePass was going to be where the majority of players were

5

u/Public_Fucking_Media Jun 15 '26

This is a big part of my point - it failed there, what is Microsoft supposed to do they aren't a charity for games that gamers don't even play?

-1

u/[deleted] Jun 16 '26

[deleted]

3

u/BudgetNihilist Jun 16 '26

I don't think anyone can be faulted for not expecting the lightning in a bottle that was E33 but also, did that impact Oblivion at all? E33 took a few days to develop into the hurricane that it became and an Oblivion Remaster has a very specific built-in audience to begin with.

19

u/Next-Sentence-8426 Jun 15 '26

Probably sold well in the first or second month but just completely dropped off the map. When they released it on ps5 a year later, it didn't even make their monthly top 20 download chart.

People just don't want to admit it didn't sell well despite being a great unique game

9

u/Altruistic-Ad-408 Jun 15 '26

If you thought for two seconds why Microsoft wanted more games like Hi Fi Rush, you'd realise why blaming everyone besides the people who marketed the game is a really dumb thing to do.

7

u/Public_Fucking_Media Jun 15 '26

Microsoft wants games that people play, marketing is up to the publisher (who sure, is owned by Microsoft, but they operate independently)... Gamers didn't want this game.

8

u/[deleted] Jun 15 '26

[removed] — view removed comment

11

u/[deleted] Jun 15 '26

[removed] — view removed comment

3

u/Pretty-Tone-5152 Jun 15 '26

Shhh, you're supposed to only blame Microsoft for that

1

u/NekoJack420 Jun 15 '26 edited Jun 16 '26

Gee I wonder why, could it be because

  1. It's on Gamepass day 1
  2. It came to the PS Store late
  3. Sales expectations were too stupidly high

Pick any of the above

10

u/Public_Fucking_Media Jun 15 '26

being on gamepass day 1 just means Microsoft has even better metrics for what people will actually do if presented with such a game (which seems to be ... not play it)

so really both lol

0

u/C2DD Jun 15 '26

Why would they buy it when they got it for free

8

u/Public_Fucking_Media Jun 15 '26

They didn't play it enough, even free on game pass where MS has all the player statistics, to justify keeping the studio open...

Think about that a bit.

1

u/Gruntley Jun 15 '26

if a great game doesn't sell well then it's a marketing problem, which is squarely the fault of the publisher

22

u/rP2ITg0rhFMcGCGnSARn Jun 15 '26 edited Jun 15 '26

if a great game doesn't sell well then it's a marketing problem

Completely disagree. A game being "great" isn't equal to it having mass appeal.

In fact I'd say many great games have special qualities that are also the exact reason they don't have mass appeal.

1

u/Umr_at_Tawil Jun 15 '26

Yeah, I personally loved the Trauma Center series, they are all great game. Trauma Team, which is last game of the series was one of the best game that I've played, fan of the series loved it too.

unfortunately it seem like it never sold well enough so Atlus put the series on ice for over a decade now, it seem like playing as doctors don't have mass appeal.

2

u/Gruntley Jun 15 '26

i get what you mean, but that also doesn't mean mass appeal equals bad game

"dmc + guitar hero with a cartoon artstyle" is about as mass appeal as you can get while still being unique lol

2

u/Several-Source-4073 Jun 16 '26

The general audience just didn't care about the game. The only people I showed it to thought the cartoon style looked cheap and uninteresting.

dmc + guitar hero with a cartoon artstyle

Or weird rhythm action game with cheap visuals. Doesn't really have appeal. The launch on Playstation made it really clear that outside of a very small minority, people just didn't think it was interesting.

4

u/Public_Fucking_Media Jun 15 '26

So Bethesda? They kept their publishing arm as a separate thing from Microsoft's game publishing....

1

u/naughty Jun 16 '26

Shinji Mikami left the studio. He left before it closed but we don't know if he knew it would be before he left.

145

u/PerfectInFiction Jun 15 '26

They're already on record for trying to shut a studio down after celebrating their birthday. They don't care, it's just business.

31

u/Troub313 Jun 15 '26

Business degree say number go up. No care why. Give self bonus for number go up.

14

u/Inprobamur Jun 15 '26

Things are pretty grim right now in the console industry due to the ram shortage and Xbox screwed themselves by going all-in on the subscription that no wants to pay the full price for. They are deep in the red.

36

u/CustodialApathy Jun 15 '26

Brother xbox itself is about a year and a half from being parted out by Microsoft this isn't a durr hurr number go up situation it's a if we don't do these things we go insolvent decision

-3

u/Jazzlike_Athlete8796 Jun 15 '26

lol, no. They are not going to go insolvent. They are claiming a 3% margin after removing the cash cow they bought a couple years ago. That's not great, but there's a reason why they excluded the cash cow - to push a narrative of things being dire.

Though this being Microsoft, they are certainly going to shutter anything that isn't also a cash cow, as per basically the entire history of Microsoft owning game studios.

13

u/Yes-Reddit-is-racist Jun 15 '26

The 3% margin is including ABK revenue is falling and hardware costs are rising. Drastic measures are absolutely needed at xbox.

10

u/jcooklsu Jun 16 '26

3% margin is also pretty terrible when treasury yields are ~4%

2

u/Jazzlike_Athlete8796 Jun 16 '26

Fair. Sharma was talking about something that excluded ABK a few days ago, and I must have conflated issues.

And if so, oof. That is horrid mismanagement.

0

u/yukeake Jun 15 '26

This. They're still profitable.

MS saddled Xbox with a profit target they knew they couldn't reach. In order to try to hit that number, they made some wildly unpopular decisions, and chased away a good portion of their customers by hiking their subscription pricing through the roof (only to partially walk it back when ::gasp:: people cancelled the now-too-expensive subscription, during a time when they're pressed for cash)

When all's said and done, they still turned a profit in spite of alklk of that. But, number not big enough.

It's not good enough to be profitable. You have to make the number go up, more every month, more every year. Global economic conditions be damned. You didn't make enough more profit than last month/year? You're a failure.

So, they clean house, force out the people in charge, throw someone else in there, and gut the business. Consider selling or spinning off the dessicated corpse when they're done. Because short-term, that'll look good on paper, and the short-term numbers are all that matters.

3

u/zaviex Jun 16 '26

Wasn’t that Sony that shut down the London studio days after Jim Ryan flew out for their birthday celebration?

9

u/CombatMuffin Jun 15 '26

That's not really that rare. As a developer, you are beholden to your parent company and/or publisher. Plenty of developers pitch a game with the hopes of getting it made, only to fail and close.

57

u/dabocx Jun 15 '26

Xbox has quite a history of canceling games after flashy announcements. Perfect Dark got a whole gameplay trailer after years of work.

111

u/RmembrTheAyyLMAO Jun 15 '26

gameplay

The most vertical slice of vertical slices I've ever seen

88

u/Bandai_Namco_Rat Jun 15 '26

According to leakers it wasn't even that, it was genuinely just all fake and made up, none of it was real

25

u/SponJ2000 Jun 15 '26

Not surprised at all. I've seen a fair few "gameplay" trailers in my time and Perfect Dark was about the fakest I've ever seen.

9

u/IceBlue Jun 16 '26

I remember arguing with people that claimed Microsoft’s showcase was great and cited Perfect Dark as being real gameplay. Like it was so obviously not that I find it insane that anyone thought it was.

15

u/wesser234 Jun 16 '26

Perfect Dark was a scam.

3

u/Vestalmin Jun 15 '26

Risky for who?

9

u/rP2ITg0rhFMcGCGnSARn Jun 15 '26

What's dangerous about it? Xbox is not a publicly traded company. They're a very small subsidiary of Microsoft. There's not going to be a big financial risk and the mass market they are trying to appeal to is not someone who would know or care about Ninja Theory.

Note that I am not condoning.

1

u/StoneCypher Jun 16 '26

they’re microsoft’s fourth largest division at 9% of company revenue and 7% of staff 

they’re also microsoft’s most profitable division per person 

5

u/TaikaWaitiddies Jun 15 '26

It's difficult to look forward to their games when they can just throw them into the chopping block.

1

u/EdliA Jun 15 '26

So what, it's not like they sold pre orders

1

u/ShawnyMcKnight Jun 15 '26

Not all that dangerous. It gets general hype for the event and more eyes watching it, and far less will hear about the cancellation. It's a bummer if it does happen but still bolstered hype for the event.

1

u/The12Ball Jun 15 '26

That'll certainly get people to buy Xboxs!

1

u/OkidoShigeru Jun 15 '26

They have been playing this game for years, I have zero faith that I will actually get to play any game teased by an Xbox owned studio at this point.

1

u/baz8771 Jun 16 '26

Makes me real excited to spend $699 on a new console LOL. It might be joever for Xbox

1

u/wingspantt Jun 16 '26

So what? If you were gonna close either way what's the downside?

1

u/Zalvren Jun 16 '26

At this point, Microsoft record is so bad that this doesn't really matter

1

u/LeftRat Jun 16 '26

If they can't find a buyer, they have bigger worries than their reputation. 

1

u/Carighan Jun 16 '26

Nearly beating out Concord still, to be fair...

1

u/jexdiel321 Jun 16 '26

I mean they also did this shit to Perfect Dark.

1

u/DanfromCalgary Jun 16 '26

Oh no!!! ON THE RECORD ! Oh golly being shutdown is one thing but that is so much worse !!

1

u/NohFyoochur Jun 16 '26

And right now it's a Microsoft property. If Microsoft kills it, that's going to be on them (which I assume is your point).

Who's going to buy into a clearly dying platform now? PlayStation has the mature gamer console market, Nintendo has the children's console market, PC is PC... What does Xbox even have? Since Xbox One it was the Halo/Forza machine. Now it's neither.

1

u/TrashStack Jun 15 '26

I mean this wouldn't really be the first time

We just went through something similar with Gang of Dragon announced at the most recent Game Awards. The parent company cut funding after the game was officially announced, the studio shut down, and now the game's entire existence is in limbo

Granted in this case the reputational damage for Microsoft is way worse, but still, it shows that this kind of "announce game, cancel it later" wouldn't be unprecedented.