Microsoft shuts down Ninja Theory after £197 million loss

Microsoft has decided to shut down British game studio Ninja Theory after accruing significant financial losses. An analysis of the studio's financial statements revealed that Microsoft spent around £182.5 million on Ninja Theory from the acquisition date until June 2023. This included £90.3 million for the acquisition itself and an additional £92.2 million in direct financial support. Over the next two years, Microsoft's total expenses on the studio exceeded £220 million.

Despite the substantial investment, Ninja Theory's commercial returns were minimal. From the acquisition until summer 2023, the studio generated only approximately £22.9 million in revenue. As a result, Microsoft's net loss from owning Ninja Theory exceeded £160 million by summer 2023. Including the subsequent two years of financial support, the corporation's net loss reached approximately £197 million, with no net profit.

Microsoft's decision to close Ninja Theory comes after failed attempts to sell the studio to outside investors. The high production costs, coupled with weak commercial performance and massive cumulative losses, made the studio's continued existence untenable. Xbox management has announced layoffs and a gradual liquidation of the division.