XBOX Cuts 268 Jobs as Activision Takes Over Halo and Other Major Studios Face Restructuring

XBOX has announced another major round of restructuring in its gaming division, cutting 268 more jobs and changing how it manages several of its first-party studios and franchises. This update is part of the larger XBOX reset revealed earlier this year. According to the company, these changes mean it is about three-quarters of the way through its planned restructuring.

These changes impact Halo Studios, other first-party teams, and the management layer of XBOX Game Studios. Beyond job cuts, XBOX is merging studios and shifting responsibility for some of its biggest franchises to other parts of the company. Activision is taking over the next Halo. One of the biggest changes is with Halo.

Activision will develop the next major Halo game with a new team separate from its Call of Duty developers.

Halo Studios will not disappear entirely. According to Matt Booty, Halo Studios will still exist, but with a smaller team that will support current Halo games and the community, in an internal message. However, Activision will take over development of the next major Halo game—a sizable franchise.

Halo has traditionally been developed within XBOX's first-party structure, with Halo Studios—formerly 343 Industries—serving as the franchise's primary developer. The new arrangement means Activision will With this change, Activision will play a much bigger part in Halo's future.

XBOX has not yet shared who will be on the new development team or when the next Halo game will come out. Rare and World's Edge are also moving under Activision, beyond Halo. XBOX confirmed that Activision will also expand its remit to include Rare and World's Edge.

World's Edge is best known for managing the Age of Empires series, and Rare is behind Sea of Thieves.

With the restructuring, Activision will now oversee several major XBOX franchises, not just Halo. The goal is to operate with fewer business units, bring groups that already work closely together under common leadership, and make greater use of its publishing expertise. Playground Games and Turn 10 are becoming one team.

Another major change affects the Forza and Fable franchises. Playground Games and Turn 10 Studios will join together as one team focused on Forza and Fable. XBOX says the studios have already worked together for over ten years, and their work will now officially be combined into one group.

Bethesda has been developing Fable, while Turn 10 has traditionally led the Forza Motorsport series. The announcement does not mean either franchise has been canceled; instead, XBOX is consolidating the teams behind them. Bethesda expands its oversight of Obsidian.

Bethesda will also have a bigger role, as XBOX confirmed it will now oversee Obsidian Entertainment. Obsidian will keep working on its current projects, like Grounded, and will also team up with Bethesda Game Studios on a new Fallout project.

This move brings together two studios with extensive experience in the Fallout series.

Obsidian made Fallout: New Vegas, and Bethesda Game Studios has created the main Fallout games since Bethesda took over the franchise. Ninja Theory faces a potential closure. The restructuring also leaves Ninja Theory's future uncertain. Earlier this year, XBOX announced plans. Earlier this year, XBOX said it wanted to find new ownership for Ninja Theory.

The latest update says those talks have not led to a deal, and XBOX has started discussions about the studio's future. This could eventually lead to Ninja Theory closing, since it is currently associated with the Senua franchise. Xbox's July restructuring announcement had previously indicated that the studio was being considered for new ownership, with the intention of supporting its work on Senua.

So, the latest announcement leaves the studio's future up in the air, rather than confirming a shutdown. Arkane's future is also being discussed. Ninja Theory is not the only studio with an uncertain future. XBOX says consultations regarding Arkane are continuing, meaning its future is not yet decided. This is part of the larger restructuring that began earlier this year, which started with the required consultation process in France to examine possible strategic options for the studio.

Another stage of XBOX's larger reset. The 268 additional job cuts follow a much bigger restructuring XBOX announced in July. Back then, XBOX said it would cut about 3,200 jobs during FY27, including around 1,600 right away. The company also said some studios would move to new owners or management.

RMA described the July restructuring as the company's most significant organizational reset, citing the size and complexity of its studio portfolio, management structure, and changing economics of the gaming business. The latest update shows that the reset is still changing how XBOX's first-party studios are organized.

By cutting individual teams, XBOX is consolidating studios around major franchises and moving responsibilities between its internal groups. Activision now has a larger role across Halo, Sea of Thieves, and Age of Empires; Bethesda is expanding its relationship with Obsidian, and Playground Games and Turn 10 are being brought together.

For employees and studios affected by these changes, the restructuring brings ongoing uncertainty. With 268 more jobs cut and talks still happening at Ninja Theory and Arkane, Xbox's reset is not yet complete.