From Engadget · Kris Holt · · 1m 30s
Xbox cuts 268 jobs as Halo moves to Activision
Microsoft's gaming division continues its summer restructuring with layoffs across studios and major franchise changes.
In brief
Microsoft's gaming division continues its summer restructuring with layoffs across studios and major franchise changes. Xbox is laying off 268 people and moving Halo development to Activision as part of a broader restructuring to improve efficiency and profit margins. Originally reported by Engadget.
Xbox cuts 268 jobs in latest round
Microsoft's Xbox division is laying off 268 people across Halo Studios, other first-party developers, and management teams.
Part of broader summer reset
Xbox laid off 1,600 people in July and committed to cutting the same number over the following year to improve efficiency and profit margins.
Halo development moves to Activision
A small team at Halo Studios will support existing games, but Activision will develop the next Halo game. Activision also now oversees Rare and World's Edge.
Other studios reorganised or spun out
Obsidian moves under Bethesda, Playground and Turn 10 merge for Forza and Fable, and Compulsion Games and Double Fine become independent with funding and IP rights.
Undead Labs goes independent
Undead Labs spins out as independent studio with State of Decay three coming to Xbox, PC and PlayStation next year. A closed beta is expected by year end.
“Independence brings us closer to our community and lets us focus on what matters most: making the best games we can.”
Ninja Theory and Arkane Studios at risk
Xbox's attempts to sell Ninja Theory failed twice and the studio now faces closure. Arkane Studios is also being divested, with consultation continuing through end of 2026.
The essence
Xbox is laying off 268 people and moving Halo development to Activision as part of a broader restructuring to improve efficiency and profit margins.
