Xbox layoffs and Halo move to Activision sound a bum note, but fall game season always brings joy

Despite grim news from Xbox, the sheer volume of exciting new games arriving this fall offers a welcome distraction.

Sep 27, 2026
Game News
Xbox layoffs and Halo move to Activision sound a bum note, but fall game season always brings joy

For video game journalists, the fall season typically heralds a busy, albeit stressful, period filled with exciting new releases. This year, however, Xbox cast a shadow over the industry's most anticipated time of year with significant layoffs and restructuring.

A Season of Games

This period, lasting six to eight weeks, is usually a welcome refocus on what truly matters: the games themselves. It's a time when outlets are inundated with promising titles, fostering a collective excitement within the industry and among players. As the Polygon team dives into reviewing games like Fire Emblem: Fortune's Weave and anticipates the release of the highly acclaimed Ace Combat 8, the sheer volume of quality content promises a strong finish to the year. This contrasts sharply with a summer dominated by less cheerful news.

Xbox's Restructuring

This positive momentum was recently disrupted by a wave of bad news from Xbox. Microsoft confirmed layoffs affecting 268 employees and a significant restructuring that moved the Halo franchise, along with Rare, to Activision. This move effectively diminishes Xbox Game Studios (XGS), reducing it to just three studios after a series of closures and consolidations. While Xbox still holds considerable power through its ownership of major entities like Activision, Blizzard, and Bethesda, the shift centralizes power away from the Xbox brand itself and towards these historically multiplatform businesses. The fate of Halo, once Xbox's flagship franchise, now rests with Activision, raising questions about its future direction and the effectiveness of a potential reboot.

The rapid pace of change within Xbox Game Studios raises concerns about the impact on games currently in development. Despite the uncertainty, the resilience of game development continues to shine through. Titles like Ace Combat 8 and Fire Emblem: Fortune's Weave stand as testaments to the industry's capacity to produce astonishing and engaging experiences, even amidst internal turmoil. The abundance of these remarkable games offers a compelling, if at times overwhelming, reminder of why the industry, and the season, continues to be so captivating.

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