Microsoft has confirmed another 268 layoffs across Xbox, hitting Halo Studios, unspecified other first-party teams, and the management layer of Xbox Game Studios. The cuts arrive alongside a sweeping reshuffle of who runs what: Rare and World’s Edge now sit under Activision, Playground and Turn 10 are merging to focus on Forza and Fable, and Bethesda has taken oversight of Obsidian. Activision will also lead development of the next Halo game through a newly built team.
This is the latest tremor in a restructuring that’s been rattling Xbox since July, when CEO Asha Sharma announced cuts affecting 3,200 employees in what she called the most significant reorganization the company had undertaken. Of those, 1,600 layoffs took effect immediately, while another 1,600 remained a looming threat for staff who kept their jobs. That same round saw Double Fine and Compulsion Games spun back out as independent studios. Today’s 268 cuts are described as pushing Microsoft roughly three-quarters of the way through that previously announced plan – a framing that lines up with what Blizzard’s rising standing within the Xbox hierarchy has already suggested about where Microsoft’s priorities sit.
Who Answers to Whom Now Studio / Team What’s Changing Rare & World’s Edge Now fall under Activision’s remit Playground & Turn 10 Joining together to focus on Forza and Fable Obsidian Now overseen by Bethesda; continuing Grounded and a new Fallout project with Bethesda Game Studios Next Halo game Moving to Activision under a new, purpose-built team Halo Studios A small remaining team will support the Halo community and games already in-market Ninja Theory Facing proposed closure after two divestiture deals fell through Arkane Consultation ongoing, expected to run through the end of the yearXbox executive vice president and chief content officer Matt Booty framed the changes as an effort to strengthen the company’s franchises by running fewer business units and aligning teams that already work closely together, according to a note shared on the Xbox blog. The intent, as described, is to focus Microsoft’s publishing muscle rather than spread it thin across overlapping studios.
Not every outcome is settled. Ninja Theory, the Hellblade developer, is now facing proposed closure after two separate buyer arrangements collapsed, though Microsoft says it’s beginning employee consultation while still exploring other paths forward. Arkane’s situation remains open too, with consultation continuing through the end of the year – a process that echoes the kind of workforce uncertainty playing out elsewhere in the industry, including Rockstar’s own staff organizing efforts amid comparable job security concerns.
Neither PC Gamer nor TechSpot’s coverage of the announcement suggests Microsoft is done. With the restructuring pegged at roughly three-quarters complete, more than 1,300 employees could still be affected before this particular chapter of Xbox’s downsizing closes out.
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