Employees at Ninja Theory, the developer of the Hellblade series, have reported layoffs and job insecurity on LinkedIn. Affected staff include technical directors, gameplay programmers, sound designers, and technical artists. These reports follow a period of uncertainty regarding the studio's future under Xbox ownership.

The third installment of the Hellblade franchise was previously announced for a 2027 release on PC, Xbox, and PlayStation 5. Despite this, gameplay programmer Katrin Mair indicated that the team would not complete their current work. Xbox has not issued an official cancellation, but the project's status remains unclear.

Ninja Theory was initially excluded from the 3,200-job reduction announced by Xbox in July. At that time, CEO Asha Sharma stated the studio had secured funding to finish the game under new ownership. However, in September, chief content officer Matt Booty confirmed that two potential acquisition agreements had failed.

Following the collapse of these deals, Xbox initiated a consultation process regarding the potential closure of the studio. While Xbox continues to explore other options, no further updates have been provided. A company-wide town hall meeting is scheduled for October 6, where additional information may be disclosed.