# Activision takes over Halo in Xbox's massive restructuring

> Microsoft is consolidating its gaming studios and laying off hundreds as part of a sweeping Xbox reset that hands major franchises to Activision.
- Title: Activision takes over Halo in Xbox's massive restructuring
- Summary: Microsoft is consolidating its gaming studios and laying off hundreds as part of a sweeping Xbox reset that hands major franchises to Activision. Microsoft…
- Keywords: microsoft, xbox, activision, halo, layoffs, studio reorganization, sea of thieves, age of empires, halo studios, 343 industries, rare, world's edge
- Source: The Verge — https://theverge.com/news/998586/activision-halo-xbox-reorganization-layoffs
- Author: Tom Warren
- Published: 2026-09-22T14:00:33+00:00
- Read time: 2 min
- Topics: microsoft, xbox, activision, halo, layoffs, studio reorganization, sea of thieves, age of empires, halo studios, 343 industries, rare, world's edge
## Activision takes over Halo
Activision will develop the next flagship Halo game with a new, dedicated team separate from Call of Duty development. Halo Studios will only support existing titles like Halo Infinite.

> Activision will also be developing the next Halo title, led by a new, purpose-built team that is separate from ongoing development and plans for Call of Duty.
## 268 Xbox employees laid off
Microsoft is cutting 268 roles across Halo Studios, other first-party studios, and Xbox management as part of its ongoing restructuring announced earlier this year.
## Activision expands to three franchises
Beyond Halo, Activision is taking control of Sea of Thieves from Rare and Age of Empires from World's Edge, consolidating major gaming properties under one division.
## Forza and Fable studios merge
Turn 10 Studios and Playground Games are combining into a single studio focused on the future of Forza Horizon and Fable franchises after working together for over a decade.
## Obsidian joins Bethesda for Fallout
Obsidian Entertainment is moving to Bethesda to work on a new Fallout game in close partnership with Bethesda Game Studios, following the success of the Fallout TV series.
## Casual games move to King
Microsoft is transferring its casual games unit, which makes Solitaire, Mahjong, and Minesweeper, from Bethesda to King to unite its two global leaders in casual game design.
## Ninja Theory closure likely
Two separate agreements to divest Ninja Theory fell through, and Microsoft is now consulting with employees on a proposed closure while exploring other options.
## Undead Labs goes independent
Undead Labs has successfully separated from Xbox with its IP, back catalog, and runway funding, and will release State of Decay 3 day one on Game Pass with a new publisher.
## Three-quarters through restructuring
Microsoft has cut nearly 1,900 roles so far and says it's roughly three-quarters of the way through previously announced restructuring, with over 1,000 more roles still to be announced.
## Halo Studios faces major changes
Halo Studios, formerly 343 Industries, has undergone leadership overhauls and layoffs in recent years and will now only support existing Halo games while Activision develops the next flagship title.
## Activision's bold Halo ambition
Activision president Rob Kostich says the goal is to make the greatest Halo game ever, worthy of its universe and legacy, with a purpose-built team ready to deliver the next chapter.

> For Halo, our goal is clear: make the greatest Halo game ever, worthy of its universe and legacy.
## Key takeaway

Microsoft is fundamentally reorganizing Xbox by moving Halo, Sea of Thieves, and Age of Empires to Activision, cutting 268 jobs, and merging studios to focus on fewer, stronger franchises.