Xbox Moves Halo to Activision, Shifts Studio Oversight, Cuts 268 Jobs
The reorganization moves Halo, Sea of Thieves, and Age of Empires under the same publisher that runs Call of Duty, concentrating several of Xbox's largest franchises inside Activision while Ninja Theory faces a closure proposal.
Key Facts
- Microsoft announced on September 22 that the next Halo game will be developed by a new dedicated team at Activision, separate from the Call of Duty team.
- Microsoft will cut 268 positions at Halo Studios, other first-party studios, and Xbox Game Studios management and shared services divisions.
- Obsidian Entertainment moves under Bethesda's oversight and continues development of a new Fallout project with Bethesda Game Studios.
- Turn 10 Studios and Playground Games will be integrated into a single studio handling the Forza and Fable series.
- Two agreements to sell Ninja Theory fell through, and Microsoft has started employee consultations on a closure proposal for the studio.
Reporting from 3 sources: Denfaminicogamer, Automaton, Game Spark.
Microsoft announced a wide reorganization of its Xbox game studios on September 22. The next Halo game will be led by a new dedicated team at Activision, separate from the Call of Duty team, with a small group staying at Halo Studios to support existing titles and the community. Rare and World's Edge also move under Activision. Bethesda takes oversight of Obsidian Entertainment, which continues Grounded and a new Fallout project with Bethesda Game Studios. Turn 10 Studios and Playground Games merge into one studio handling Forza and Fable. King absorbs Microsoft Casual Games. Microsoft will cut 268 positions across Halo Studios, other first-party studios, and Xbox Game Studios management and shared services. Matt Booty said about three-quarters of the reorganization plan is complete. Two sale agreements for Ninja Theory fell through, and the company begins employee consultations on a closure proposal. Consultations for Arkane continue through the end of the year.
The changes were announced through an Xbox Wire message from Matt Booty addressed to employees, and they extend beyond the layoffs to oversight of whole franchises. Compulsion Games and Double Fine Productions returned to their own management in August with their IP, back catalogs, and short-term operating funds. Undead Labs completed a similar transition and will release State of Decay 3 under a new publisher, with the game still planned for Game Pass from day one.
Halo Studios itself does not disappear immediately, but the central role in future mainline development shifts to Activision. Obsidian joins Bethesda's purview while continuing its existing projects. Turn 10 and Playground Games have worked together on Forza for more than 10 years, and the reorganization formally makes them one team. Booty said the reorganization plan is roughly three-quarters finished, counting studio sales since July and the layoffs. Ninja Theory is not formally set for closure yet, and Arkane's talks run to the end of 2026.
- Halo series development: Next Halo game led by a new dedicated team at Activision, separate from the Call of Duty team; a small team stays at Halo Studios for support
- Rare and World's Edge: Move under Activision's oversight
- Obsidian Entertainment: Moves under Bethesda's oversight; continues Grounded and a new Fallout project with Bethesda Game Studios
- Turn 10 Studios and Playground Games: Integrated into a single studio handling Forza and Fable
- Microsoft Casual Games: Moves under King's oversight, unifying casual game design and live operations
- 268 layoffs: Positions cut at Halo Studios, other first-party studios, and Xbox Game Studios management and shared services
- Compulsion Games and Double Fine Productions: Returned to their management in August with IP, back catalog, and short-term operating funds
- Undead Labs: Completed the same transition; State of Decay 3 gets a new publisher and stays on Game Pass from day one
- Ninja Theory: Two sale agreements fell through; employee consultations begin on a closure proposal while other options are considered
- Arkane: Consultations ongoing and expected to continue until the end of the year
Synthesized by Yomimono from the 3 cited sources below, including Japanese-language reporting where cited, then editorially reviewed before publishing.