Xbox has announced that it is closing down Ninja Theory, the studio behind the critically acclaimed Hellblade series. Staffers were informed of the closure during a call on Monday, though they hope for a potential buyer.

The move comes as several other Xbox studios are in active negotiations with Microsoft about spinning off, including Compulsion Games and Double Fine. This follows a warning from Xbox CEO Asha Sharma and chief content officer Matt Booty earlier this week of the need to reset the business, citing overextension with its studio system and high hardware costs.

The closure of Ninja Theory is significant as the studio has produced highly regarded titles such as Hellblade: Senua's Sacrifice and Senua's Sacrifice II. The future of upcoming Hellblade game, Senua, remains unclear. Sharma has recently made several major decisions on exclusives for the Xbox console, including securing Gears of War: E-Day and Clockwork Revolution.

Microsoft did not respond to a request for comment.