It was less than ten days ago when Xbox showed off Ninja Theory’s next big game, Senua, and it’s already looking like the studio might get shut down before it has a chance to publish.

That’s according to Bloomberg, which reports that Xbox is currently looking at closing down ‘multiple’ studios under its umbrella. This not only includes Ninja Theory, but Double Fine and Compulsion Games, too.

The Bloomberg report claims that all three studios have started discussions to buy independence back from Microsoft with the aim to find alternative buyers to fund their next projects.

The Verge also reports that staff at Ninja Blade were told of the situation in an all-hands meeting on Monday. Ninja Blade is known for making the Hellblade games, having published one as an indie title and a second under the Xbox Game Studios banner.

The critical reception to Hellblade: Senua’s Sacrifice was mixed with criticism aimed at its short length, lack of deep gameplay and simple puzzles. However, gamers couldn’t ignore the impressive rendering tech and best-in-class audio production that the studio is known for.

The third game in the series – simply titled ‘Senua’ – was revealed at the Xbox Games Showcase earlier this month with it thought to feature more meaningful gameplay mechanics. It was announced with a targetted release window of 2027 for Xbox, PlayStation 5 and PC.

Now, it seems unclear whether the studio will get to publish the title at all.

Xbox CEO Asha Sharma braced developers for impact last week in a statement written to all Xbox employees. Titled ‘XBOX Reset’, Sharma outlines a few points that the company must reckon with, writing: “It is important to have both optimism and realism as we work to reset the business.”

Sharma also revealed that Xbox will end its fiscal year with a roughly 3% accountability margin, which is down year-over-year.

“Excluding Activision Blizzard King, over the past five years, we have spent over $20 billion on ongoing investments in our content, platform, and hardware subsidy, but our annual revenue has declined nearly half a billion during that time,” Sharma writes. “Going forward, this cannot continue.”

The statement also says that Xbox will ‘sprint’ to make progress. With these subsequent layoffs and the pivot to make Gears of War E-Day and Clockwork Revolution console exclusives, sprinting appears to be exactly how Sharma is steering the ship right now.

Xbox hasn’t released an official comment on the potential studio closures and layoffs just yet. We’ll report back when we hear more.