Microsoft reportedly had already decided to split with or sunset Ninja Theory before the studio publicly revealed its new game, Saga, at Xbox's June 7 showcase. A source told Game File that the new game announcement was intended to attract investor interest ahead of a potential studio spinoff. Multiple Xbox studios — including Double Fine and Compulsion Games — are reportedly negotiating independence as Microsoft prepares significant cuts following years of decline in its gaming division. Xbox CEO Asha Sharma has acknowledged a business reset is underway, with major cuts expected after June 30, 2026. Even successful spinoffs may result in layoffs due to loss of Microsoft funding.
