Xbox has confirmed an additional 268 layoffs as its significant restructuring efforts continue, impacting Halo Studios and other first-party divisions. These latest cuts follow massive job reductions in July, which saw 1,600 employees laid off.
In a company-wide note, Xbox executive vice president and chief content officer Matt Booty detailed several organizational shifts. Rare, the developer behind Sea of Thieves, and Age of Empires studio World's Edge will now operate under Activision's purview. The Playground Games and Turn 10 Studios teams will merge to concentrate on the Forza and Fable franchises. Obsidian Entertainment, currently working on projects like Grounded, will be overseen by Bethesda and will collaborate with Bethesda Game Studios on a new Fallout title.
Additionally, the next installment in the Halo franchise will be developed by Activision, led by a newly formed team distinct from its Call of Duty operations. A smaller team at Halo Studios will remain to support existing Halo games and the community.
Regarding studio fates, Ninja Theory, the developer of Hellblade, is facing proposed closure following the failure of two separate agreements. Microsoft is currently in consultation with employees to explore alternative paths forward. Consultation with Arkane, known for Dishonored and Deathloop, is ongoing and expected to conclude by year's end.
Booty stated these changes are intended to "strengthen our franchises and games by operating fewer business units, aligning groups that already work closely together, and focusing our publishing expertise." The company indicated these adjustments bring it roughly three-quarters of the way through its previously announced restructuring, with over 1,300 employees still facing potential layoffs.