Microsoft's Xbox division is undergoing a significant restructuring, marked by widespread layoffs and studio reorganizations. Hundreds of employees are being impacted across various first-party studios and the Xbox Games Studios management team. In a memo to staff, Xbox chief content officer Matt Booty confirmed that 268 employees are affected by these latest changes.
Halo Franchise Moves to Activision
The prominent Halo franchise will now be managed by Activision, the publisher known for the Call of Duty series. Activision will oversee the development of future Halo titles, with a new team being specifically established for this purpose. This new team will operate separately from ongoing Call of Duty development. A smaller group will remain at Halo Studios to provide support for existing Halo games and the community.
Ninja Theory to Close
Microsoft also announced plans to close Hellblade developer Ninja Theory. The company stated that attempts to find a buyer for the studio were unsuccessful. Consultation with employees regarding the proposed closure has begun, though Microsoft is reportedly exploring other potential outcomes for the studio.
Broader Layoffs and Studio Consultations
These layoffs follow previous cuts announced in July, which saw Xbox CEO Asha Sharma detail plans to reduce the workforce by a total of 3,200 employees over the coming year. Those earlier reductions impacted studios such as Double Fine Productions and Compulsion Games, which transitioned back to independent status, and Undead Labs and Ninja Theory, which were slated for sale.
The recent changes also affected employees across Activision, Bethesda/ZeniMax, Blizzard, King, Mojang, and Xbox Game Studios. Sharma had previously indicated a goal to streamline operations by reducing management layers within Xbox. Consultations are also ongoing with Arkane, the developer behind Dishonored and Blade, with expectations that these discussions will continue through the end of the year.