● Covered by 1 source · 1 reportMedium impact1 negative
Microsoft Lays Off 268 Xbox Staff, Ninja Theory Faces Closure After Sale Attempts Fail
Key points
- Microsoft laid off 268 Xbox employees.
- Ninja Theory faces potential closure after sale attempts failed.
- Undead Labs sale is proceeding, Arkane consultation continues.
- Activision is taking over management of Halo, Sea of Thieves, and Age of Empires.
Xbox Layoffs Continue
Microsoft has announced the layoff of 268 Xbox employees, affecting Halo Studios, other first-party studios, and Xbox Game Studios (XGS) management. These cuts are part of a larger restructuring plan that began in July, which previously impacted 1,600 Xbox employees. The current layoffs contribute to the 3,200 roles Microsoft confirmed would be affected through its 2027 financial year.
Ninja Theory's Uncertain Future
Attempts to sell Ninja Theory, one of the studios Microsoft intended to divest, have failed. Two separate agreements for the studio fell through over the summer. As a result, Microsoft is now entering a consultation period with employees regarding a proposed closure, while also exploring other potential buyers.
Studio Divestitures and Reorganization
The restructuring also includes the sale of four Xbox studios. Double Fine and Compulsion Games have already become independent. The sale of Undead Labs is progressing and has transitioned on similar terms to Compulsion and Double Fine. Consultations regarding the future of Arkane and the Blade game are ongoing, in compliance with French labor laws, and are expected to continue through the end of the year.
Activision Takes Over Key Franchises
In a related organizational change, Activision will now manage the Halo franchise, along with Sea of Thieves and World's Edge, the studio responsible for Age of Empires. This move signifies a broader shift in management responsibilities within Microsoft's gaming division.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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Reporting from
Microsoft is laying off 268 Xbox employees, including staff from Halo Studios and other first-party studios, as part of an ongoing restructuring of its gaming division. Additionally, deals to sell Ninja Theory fell through, leading Microsoft to initiate a consultation period for its potential closure. This continues a broader reorganization that has impacted 1,600 Xbox employees since July and involves the divestiture of several studios.