Xbox has announced a further round of job cuts and studio reorganizations as part of its ongoing restructuring. In a recent update, Xbox executive vice president and chief content officer Matt Booty revealed that 268 employees have been laid off across various first-party studios and central functions. This brings Microsoft's gaming division approximately three-quarters of the way through its previously stated plan to eliminate 3,200 positions, following an earlier round of 1,600 layoffs in June.
As part of this realignment, Activision will now be responsible for developing the next installment in the Halo series, establishing a new, dedicated team for the franchise. Activision will also oversee Rare and the Age of Empires developer World's Edge. Obsidian Entertainment will be integrated into Bethesda, continuing its current projects including Grounded and a planned Fallout title developed in collaboration with Bethesda Game Studios.
Playground Games and Turn 10 Studios, long-time creative partners, will be formally merged into a single entity. Additionally, Candy Crush developer King will unite with Microsoft Casual Games. While Compulsion Games, Double Fine, and Undead Labs have transitioned to independent ownership or new publishers, Xbox confirmed the studio closure of Ninja Theory, as two prior divestiture agreements failed to materialize.
This latest round of changes follows Xbox CEO Asha Sharma's earlier statements emphasizing a need for simplification within the gaming division. Sharma had indicated that redundant management layers had slowed decision-making and accountability. However, the strategy of consolidating studios and shifting development responsibilities has drawn skepticism, with some developers suggesting that continuous organizational upheaval can impede quality game production.