Xbox hands Halo to Activision

Microsoft is transferring the Halo franchise and legendary UK studio Rare to Activision, along with the Age of Empires studio World's Edge. Activision will develop the next Halo title with a new purpose-built team.

Ninja Theory closure proposed

Xbox announced it is proposing to close Ninja Theory after two separate sale agreements fell through. The studio, currently working on Senua, will enter a consultation process with employees.

“Unfortunately, two separate agreements for Ninja Theory fell through.”

268 more jobs cut immediately

The restructure eliminates 268 roles across Halo Studios, other first-party studios, and Xbox Game Studios management. This brings Xbox roughly three-quarters of the way through its planned 3,200 job cuts for the year.

Undead Labs finds new home

Undead Labs has left Xbox under similar terms as Double Fine and Compulsion Games, securing a new publisher for State of Decay 3, which will launch day one on Game Pass.

“Undead Labs has now successfully transitioned on similar terms and, with a new publisher, will release State of Decay 3 day one on Game Pass.”

Bethesda expands with Obsidian

Bethesda's remit expands to include Obsidian Entertainment, which will continue work on Grounded and the previously announced Fallout sequel.

Forza and Fable merge studios

Playground Games and Turn 10 Studios are combining into a single studio focused on the Forza and Fable franchises, consolidating Xbox's racing and fantasy action game development.

Halo's troubled history

Halo Studios, formerly 343 Industries, has struggled since launching in 2007. Its 2021 release Halo Infinite faced extended development and poor management, leading to senior departures and major layoffs in 2023.

Consolidating shooter franchises

Placing Halo and Call of Duty under Activision aligns with CEO Asha Sharma's goal to reduce fragmentation and invest in core IP. Halo's slow release pace likely contributed to the decision compared to Activision's annual Call of Duty cycle.

Arkane remains in limbo

Arkane Lyon continues its consultation process with Xbox, expected to run through the end of the year. The studio's fate remains uncertain as the restructuring continues.

“Consultation with Arkane remains underway and is expected to continue through the end of the year.”

More cuts expected ahead

Xbox still has roughly 800 job cuts remaining to reach its 3,200 target for the year. Studios including Blizzard, The Coalition, and InXile have not yet been impacted.