Xbox announces further layoffs and major studio restructuring
Xbox has announced another round of layoffs and a significant restructuring of its studios, with Gaming Bolt first reporting the rumor on September 22. Activision will now develop the next Halo game, while Halo Studios shifts to a support role. Bethesda will oversee Obsidian Entertainment, and Playground Games will merge with Turn 10 Studios. Ninja Theory faces proposed closure, and Undead Labs, Compulsion Games, and Double Fine Productions are being divested.
The number of employees affected by the layoffs is disputed, with some outlets reporting hundreds of employees, while others specify 268 roles or employees. Retro Gamer reported that Xbox CCO Matt Booty stated these cuts are part of a larger restructuring plan that will eliminate 3,200 employees in total, while PC Gamer cited 1,600 employees. The Age of Empires studio, World's Edge, has been significantly impacted, losing nearly half its staff and its upcoming project, with World's Edge and Rare now falling under Activision's remit. The future of Arkane Studios also remains uncertain.
Coverage across 20 outlets
"It genuinely breaks my heart"- Confusion and frustration reign as gaming communities react to Xbox's drastic restructuring this week
Xbox has undergone a significant restructuring this week, leading to widespread layoffs and the impending closure of Ninja Theory. Studios like Obsidian Entertainment, Rare, and World's Edge have been re-assigned to different publishing arms within Xbox's ecosystem, causing confusion and frustration among players and developers regarding future game development and monetization strategies.
Bethesda Boss Issues Memo to Staff After Xbox Moves Obsidian Into the Fallout Company
Bethesda's head reassured staff that Obsidian Entertainment will remain a distinct entity following its absorption into the Xbox studios as part of a recent reorganisation. This move places Obsidian within the same corporate structure as Bethesda, which is also owned by Xbox.
Xbox Cuts Several Studios & Staff in Restructuring
Xbox is undergoing a significant restructuring, involving the elimination of 268 roles and the reorganization of several first-party studios. Activision will now oversee the next Halo game, while Playground Games and Turn 10 Studios will merge. Bethesda is absorbing Obsidian Entertainment, and Ninja Theory faces a proposed closure. These changes aim to reduce organizational complexity and concentrate resources on key franchises.
Age of Empires developer World's Edge hit with layoffs following move to Activision
The Age of Empires developer World's Edge has been significantly impacted by layoffs following its transition to Activision, with "just under half" of its employees affected. Former creative director Adam Isgreen was among those let go, expressing disappointment about the outcome of his 16-year tenure. This restructuring also saw 268 positions eliminated across various Xbox studios, leading to the closure of Ninja Theory and the independence of Undead Labs.
Age of Empires Studio Nearly Halved Amid Xbox Reset, Next Project Cancelled
The Age of Empires studio, World's Edge, has been significantly impacted by an Xbox reorganization, losing nearly half of its staff and its upcoming project. This move is part of a broader layoff scheme within Xbox.
Halo Co-Creator Reacts To Franchise Moving To Activision: “Shocked But Not Entirely Surprised”
Halo co-creator Marcus Lehto expressed shock but not surprise regarding the franchise's move to Activision following Microsoft's restructuring of its Xbox studios. Lehto, who was affected by layoffs at Halo Studios, wished well to the developers impacted by the decision. Activision will form a new team for Halo, while Halo Studios will focus on supporting existing titles and the community.
Halo Studios cinematic director promoted, then laid off in the same week
Xbox cinematic director Josh Daniels was promoted and then laid off in the same week as part of Microsoft's ongoing series of layoffs affecting 1,600 employees. This situation highlights the current instability within the video game industry, where even promotions do not guarantee job security.
Halo Moves to Activision as Xbox Cuts 268 More Jobs
Microsoft has confirmed another 268 layoffs across Xbox, impacting Halo Studios and other first-party teams, as part of a significant reorganization. Development of the next Halo game will move to Activision, while studios like Rare and World's Edge will now fall under Activision's remit. Ninja Theory is facing proposed closure.
Evening Reading - September 22, 2026
Xbox has confirmed significant layoffs affecting 268 employees across Halo Studios, Xbox Game Studios, and more. This restructuring includes the next Halo game being developed by Activision, and the merger of Turn 10 and Playground Games. Additionally, Obsidian Entertainment and Rage/World's Edge will now report under Bethesda and Activision respectively.
Xbox Layoffs: 268 Employees Affected in Latest Restructuring — Too Much Gaming | Video Games Reviews, News, & Guides
Xbox has undergone significant restructuring, impacting 268 employees. While studios like Compulsion Games, Double Fine Productions, and Undead Labs are safe and continuing work on titles like State of Decay 3, Ninja Theory and Arkane Lyon face potential closure. The article suggests Microsoft grew too quickly and its investment in Xbox Game Pass is now contributing to these cutbacks.
Games Inbox: Are you still an Xbox fan?
Readers express deep concern over recent layoffs at Xbox and the perceived decline of the brand's relevance and developer support. While some praise Capcom's successful year and positive employee treatment, others question Microsoft's strategy and the future of its studios.
What the Hell is Going on With Halo and Xbox?
Xbox Game Studios has announced significant layoffs at Halo Studios, formerly 343 Industries, with 268 roles eliminated. A smaller team will continue to support existing Halo titles, while a new, separate team under Activision will develop the next mainline Halo installment. This move is part of a broader strategy to accelerate franchise output and streamline development, though it has led to widespread criticism regarding job security and studio management.
Halo: Campaign Evolved Cinematics Director Says He Was Promoted Shortly Before Being Laid Off
Xbox's cinematics director for Halo: Campaign Evolved, Josh Daniels, was promoted and then laid off in the same week as part of new job cuts affecting 268 workers at Halo Studios. Xbox EVP Matt Booty confirmed the layoffs are part of a larger plan to eliminate around 1,600 roles. Activision will now take over leadership for the Halo franchise, with its president Rob Kostich aiming to "make the greatest Halo game ever."
Xbox lays off more jobs and consolidates its studios in massive restructure
Xbox announced further layoffs, cutting 268 jobs and significantly restructuring its studios. Key developers like Bethesda and Activision will expand their remits, while Playground Games and Turn 10 Studios will merge. A dedicated team within Activision will now develop the next Halo game, and the futures of Ninja Theory and Arkane Studios remain uncertain.
Halo cinematic director "promoted and laid off in the same week" as Microsoft continues sweeping Xbox layoffs
Microsoft continues its significant layoffs across Xbox, impacting studios like Halo Studios, Ninja Theory, and Arkane. Former Halo Studios cinematic director Josh Daniels reported being promoted and laid off in the same week. Xbox CCO Matt Booty stated these cuts are part of a larger restructuring plan that will eliminate 3,200 employees in total.
Halo Studios Cinematic Director Promoted and Laid Off Within the Same Week as Xbox's Brutal Restructuring Continues
Josh Daniels, cinematic director at 343 Industries, was promoted and then laid off within the same week as part of Xbox's significant restructuring. This comes as Activision is reportedly taking over the next Halo game.
After Microsoft's latest bloodbath, former Blizzard president Mike Ybarra offers "props to Xbox" for dismantling Halo Studios: "The best decision to reset Halo"
Following significant layoffs at Microsoft's Xbox division, former Blizzard president Mike Ybarra praised the company's decision to move the Halo intellectual property to Activision, calling it a positive reset for the franchise. The article notes that hundreds of Xbox employees were laid off, and Halo Studios has been reduced to a small support team as Activision takes over future Halo game development.
Xbox Layoffs Are Not Done Yet
Microsoft has announced an additional 268 layoffs within its Xbox division as part of a broader business reset. Xbox CEO Asha Sharma cited factors like underperforming Game Pass investments and industry hardware crises for the restructuring. Further staff reductions are expected as the company continues its overhaul.
Call Of Duty creators Activision to make next Halo game as Xbox confirm layoffs
Microsoft has confirmed significant layoffs and studio restructuring within its Xbox division, including the closure of Ninja Theory. Activision will now develop the next Halo game, while 343 Industries will focus on supporting existing titles. This move comes amidst broader industry trends of layoffs and consolidation, with other studios like Rare and Bethesda also undergoing shifts in oversight.
Hellblade developer Ninja Theory and Arkane Studios face closure in Xbox cuts
Microsoft has confirmed significant layoffs across its Xbox studios, leading to the potential closure of Ninja Theory and uncertainty for Arkane Studios. These cuts are part of a larger 'reset' for Xbox, impacting nearly 300 jobs and casting doubt on the future of projects like Hellblade 3 and Marvel's Blade.
