In a shocking twist, Microsoft unveiled Senua, the latest installment in Ninja Theory's Hellblade series at its recent Xbox Games Showcase. However, just days later, rumors of studio closures surfaced, leaving fans and industry insiders questioning Microsoft's intentions. The uncertainty began with a "reset" memo from new Xbox CEO Asha Sharma, hinting at potential layoffs and shutdowns. In the memo, Sharma revealed that Microsoft's gaming business has seen a decline in annual revenue despite significant investments over the past five years. Among the studios most at risk are Ninja Theory (Hellblade), Double Fine (Psychonauts), and Compulsion (South of Midnight), all of which have struggled commercially in recent years. This week, reports emerged that Xbox Game Studios boss Craig Duncan had stepped down, followed by speculation about various studios potentially closing down. Microsoft has yet to respond to requests for comment. According to Game File, Microsoft initially planned to close or spin off Ninja Theory when it announced Senua, hoping the promise of a new game would attract investor interest. However, Ninja Theory, Double Fine, and Compulsion are reportedly in negotiations with Microsoft for a potential buyout to avoid closure. If successful, these studios would need investment to operate independently, but could face significant layoffs in the process. The future of Senua's release remains uncertain, as does the fate of other upcoming projects. With Microsoft reportedly speeding up development on new Elder Scrolls, Fallout, and Halo games, the industry eagerly awaits the Xbox that will emerge in the next financial year.