Xbox Cuts 268 Jobs and Hands Halo to Activision

Today marks another rough and saddening day for the gaming industry. After recent success at Xbox, including announcing digital entitlement for supported physical games and now partnering with Hideo Kojima, they announced they are dramatically downsizing their workforce. Not only that, they are handing their iconic flagship series, Halo, to Activision.

Continuing The Reset

Xbox just announced it is continuing its ongoing reset and cutbacks across the company. Starting today, Xbox is eliminating 268 roles across Halo Studios, other first-party studios, and the XGS management and central functions layer.

Along with this massive workforce reduction, Xbox is also reorganizing its studios, merging some and letting go of a handful of big-name developers.

Activision will expand its remit to World’s Edge, as well as Rare. Activision will also be developing the next Halo title, led by a new, purpose-built team that’s separate from the Call of Duty teams. Halo Studios will continue supporting the Halo community and games in market.

Bethesda is also expanding its remit to include Obsidian, which will continue its current projects as well as the new Fallout project made in collaboration with Bethesda.

King is expanding to include Microsoft Casual Games. Plus, Playground and Turn 10 will come together as one studio, focusing on the Forza and Fable franchises.

Lastly, just as Double Fine previously broke off from Xbox and retained its IP, back catalog, and runaway funding, Undead Labs will now do the same. They will still release State of Decay 3 day one on Game Pass.

Unfortunately, Xbox has ended its agreements with Ninja Theory and will be dropping the studio. Meanwhile, Arkane remains under consultation, with discussions expected to continue through the end of the year.