Ninja Theory, the developer behind the Hellblade series, is entering consultation over a proposed closure as part of a new wave of Xbox job and studio cuts. Xbox said two separate agreements intended to secure the studio’s future had fallen through, although it is still exploring alternative options. The potential closure puts the future of the recently announced game Senua in doubt.

The studio had appeared to avoid Xbox’s earlier cuts in July after reportedly entering talks with an unnamed partner, but Microsoft subsequently put it up for sale. Senua was announced in June as a larger, more expansive addition to the Hellblade action-adventure series. Xbox said its immediate priority was supporting affected employees, with a company-wide town hall planned for 6 October.