Xbox is reportedly set to implement substantial changes this week, including hundreds of additional layoffs and the consolidation of several game studios. A significant development highlighted in a new report is the potential relocation of the Halo franchise under Activision Blizzard.
These potential moves follow recent warnings from gaming journalists about impending "bad" Xbox news. Earlier this year, Xbox CEO Asha Sharma announced plans to reduce the company's workforce by 3,200 employees over the next year, with an initial wave of 1,600 job cuts. Reports from Bloomberg also indicated that Blizzard Entertainment layoffs were imminent.
While layoffs have been anticipated, the consolidation of Xbox's game studios represents a new phase of restructuring. Xbox operates a vast portfolio of studios under Xbox Game Studios, Bethesda Softworks, and Activision Blizzard, providing ample opportunity for organizational shifts.
According to industry sources, the Halo brand may be moved to Activision Blizzard. While the fate of the developer Halo Studios remains unclear, the implication is that a new developer will assume control of the franchise under the publisher known for Call of Duty. It is also suggested that other studios could be reassigned to different companies within the Xbox umbrella. One speculative but logical possibility is the relocation of Obsidian Entertainment from Xbox Game Studios to Bethesda, given Obsidian's current collaboration with Bethesda Game Studios on a new Fallout title.
CEO Asha Sharma has committed to a significant overhaul of Xbox's operations, with an emphasis on its major franchises. Senior Microsoft executives Satya Nadella and Amy Hood have reportedly decided against spinning off or selling Xbox, opting instead to support Sharma's restructuring efforts.