Business · updated 1h ago · 2 min read
Microsoft’s Xbox Cuts 268 Roles, Hands Next Halo To Activision, Moves Obsidian Under Bethesda
Xbox announces 268 layoffs across Halo Studios and other first-party studios. Halo development will be transferred to Activision under the restructuring.
Treatment of the Halo franchise’s control.
7 of 9 outlets skipped it: XBOX reset includes an October 6 all-XBOX town hall.
17outlets compared
Same story, two versions
tap a side to read it in full
Ars Technica
“The biggest apparent change is for the Halo franchise, which will now be under the remit of Call of Duty maker Activision.”Read the original ↗
The Verge
“Activision is taking on the Halo franchise, alongside Sea of Thieves and World’s Edge, the studio responsible for Age of Empires.”Read the original ↗
One outlet frames it as the single biggest structural shift; another lists it alongside other portfolio moves.
Halo shifts to Activision
Microsoft’s Xbox is continuing its “reset” with a new round of restructuring that eliminates 268 roles across Halo Studios, other first-party studios, and the XGS management and central functions layer. Xbox chief content officer Matt Booty told employees that “The actions completed since July, inclusive of the studio divestitures, bring us roughly three-quarters of the way through previously announced restructuring,” as the company reorganized its internal studios. Activision will take charge of the next Halo, while Halo Studios will remain a “small team” to support the Halo community and the games in-market.
Microsoft also moved Rare and World’s Edge under Activision’s remit, and it placed Obsidian under Bethesda as part of the same studio reorganization. Microsoft said the studio changes aim to “strengthen our franchises and games by operating fewer business units, aligning groups that already work closely together, and focusing our publishing expertise.”
Ninja Theory closure talks
Microsoft began consultation with employees about a proposed closure of Ninja Theory after “two separate agreements for Ninja Theory fell through,” according to Xbox chief content officer Matt Booty. The Verge reported that Microsoft is proceeding with a consultation period to close Ninja Theory unless the company can find another buyer, as the studio’s sale deals did not complete. TBooty also said “Consultation with Arkane remains underway and is expected to continue through the end of the year,” linking Arkane’s future to ongoing talks.
Microsoft’s restructuring message tied the studio changes to its broader “reset,” with the company also reorganizing how it manages studios and intellectual properties. Asha Sharma previously described the July cuts as “the most significant restructure in Xbox history,” and the September changes extended the same restructuring timeline.
Franchises reorganized
Activision’s expanded remit now includes World’s Edge and Rare, and Microsoft said it is creating a new team specifically for the next Halo outside the usual Call of Duty development plans. Microsoft confirmed that Bethesda will oversee Obsidian, with Obsidian continuing its current projects including Grounded and collaborating with Bethesda Game Studios on a new Fallout project. Microsoft also reorganized its casual games unit, with King bringing Microsoft Casual Games into its structure as part of the same effort to reduce the number of business units.
Playground Games and Turn 10 will operate as a single studio focused on Forza and Fable, as Microsoft consolidated teams under larger organizations. Microsoft said its October 6 town hall would bring employees together as an ALL-XBOX team to “reflect on our progress and look ahead” to its game lineup.