Xbox Cuts 268 Roles, Moves Next Halo to Activision
Microsoft eliminates 268 Xbox jobs and assigns the next mainline Halo title to a new Activision team as part of its ongoing restructuring.
Key points
- Microsoft cuts 268 Xbox roles and reports its restructuring is roughly 75% complete.
- Activision takes over development of the next mainline Halo title from Halo Studios.
- Ninja Theory faces proposed closure consultations after failed divestiture agreements.
Microsoft has eliminated 268 positions across its Xbox division, a move disclosed by Executive Vice President Matt Booty in an internal memo titled “Continuing Our Reset.” The cuts span Halo Studios, first-party teams, and central management functions, representing the latest phase in a broader restructuring effort that is now approximately 75% complete.
A significant operational shift accompanies the headcount reduction: development of the next mainline Halo title will transfer from Halo Studios to a newly formed team within Activision. This decision separates the flagship franchise from its traditional home studio, with Activision now assuming expanded responsibilities for World’s Edge and Rare as well.
Studio consolidation reshapes portfolio
The reorganization aims to reduce the number of business units by aligning groups that already collaborate closely. Bethesda’s mandate expands to include Obsidian, which will continue its current projects and a new Fallout collaboration. Additionally, King absorbs Microsoft Casual Games, uniting two global leaders in casual design and live operations under a single banner.
In racing and action-adventure genres, Playground Games and Turn 10 merge into a single studio focused exclusively on Forza and Fable. This formalizes a decade-long creative partnership into one operational entity, intended to streamline publishing expertise and resource allocation across these long-running franchises.
Divestitures and closure consultations
Microsoft has completed the transition of Undead Labs, which will release State of Decay 3 on Game Pass day one with a new publisher. While Compulsion and Double Fine have already returned to management with their IP and back catalogs, negotiations with Ninja Theory have collapsed. The company is now beginning employee consultations regarding a proposed closure while exploring alternative paths.
Consultations with Arkane Studios remain ongoing and are expected to continue through the end of the year. Booty stated that the focus for the immediate future is supporting affected employees, with a town hall scheduled for October 6 to review progress and outline the upcoming game lineup.
Strategic shift in Halo development
According to The Times of India, the decision to move the next Halo title to Activision marks a decisive break from previous internal structures. The new Activision team is purpose-built and distinct from the Call of Duty development pipeline, ensuring dedicated resources for the franchise. A smaller team at Halo Studios will remain to support the community and manage existing titles in the market.
