Xbox officially announces more layoffs and widespread changes to its entire studio structure
Halo moves to Activision and Ninja Theory set to close as Obsidian, Rare and Turn 10 are affected by the shuffle
Xbox has officially announced widespread changes to its studio structure, including the merging of numerous studios, the handing over of Halo to Activision, and the potential closure of Ninja Theory.
In July, Microsoft enacted sweeping layoffs across the Xbox business, initially affecting 1,600 jobs, with another 1,600 planned by the end of Microsoft’s business year.
The next stage of this process has now been confirmed in a statement written by Xbox COO Matt Booty, with 268 roles being “eliminated” across Halo Studios, other first-party studios and the Xbox Game Studios management and “central functions layer”.
According to Booty, this now brings Xbox “roughly three-quarters of the way through previously announced restructuring”.
As part of Xbox’s new plans, Activision will take control of the Halo franchise going forwards, with “a new, purpose-built Halo team that is separate from ongoing development and plans for Call of Duty”.
Halo Studios will not close entirely but will remain as “a small team” which will “continue supporting the Halo community and games in-market”.
Activision will also take over Age of Empires studio World’s Edge and Sea of Thieves developer Rare, Xbox has announced.
Obsidian Entertainment – known for such titles as The Outer Worlds, Avowed and Grounded – will be rolled into Bethesda, as it continues working its current projects including Grounded and a new Fallout game.
Turn 10 and Playground to merge as Ninja Theory looks likely to close
Turn 10 Studios, which has been responsible for the Forza Motorsport series since the first entry back in 2005, will now merge with Forza Horizon studio Playground Games, with both becoming “one studio focused on the Forza and Fable franchises”.
“These two studios have been technological, creative, and franchise partners for over a decade, and today’s changes will formally move their work into one team,” Booty said.
Booty also officially confirmed that Undead Labs has also become fully independent, but will still release State of Decay 3 on Game Pass on day one, albeit with a new publisher.
The same can’t be said for Ninja Theory, with Booty saying that “two separate agreements” for the Senua studio fell through, and that Xbox “will now begin consultation with employees on a proposed closure while continuing to explore other paths forward”.
“Today, our focus should be on supporting those affected and treating one another with care and respect,” Booty added in his statement.
“I will spend time with our studios over the next week. At our October 6 town hall, we will come together as an all-Xbox team to reflect on our progress and look ahead to one of the strongest game line-ups in our history.”
