● Covered by 4 sources · 5 reportsHigh impact2 negative3 neutral
Xbox Restructures Studios, Transfers Halo Development to Activision, and Cuts 268 Jobs
Key points
- Xbox cut 268 jobs across Halo Studios and other first-party developers.
- Activision will develop the next Halo game, Sea of Thieves, and Age of Empires.
- Halo Studios will continue to support existing Halo titles.
- Ninja Theory is in consultation for proposed closure after failed acquisition talks.
- These actions are part of Xbox's ongoing restructuring efforts.
- Xbox CEO Asha Sharma stated that independent teams hindered shared goals.
- Halo Studios recently released Halo: Campaign Evolved.
- Activision President Rob Kostich stated their goal is to make the greatest Halo game ever.
Xbox Announces Major Restructuring and Layoffs
Microsoft's Xbox division has announced a significant restructuring of its studios, impacting 268 employees. These job cuts affect Halo Studios, other first-party developers, and the Xbox Game Studios management and central functions layer. This follows previous layoffs of 1,600 Xbox employees months prior.
Halo Development Shifts to Activision
A major change in the restructuring involves the transfer of key game franchises. Activision will now take over the development of the next flagship installment in the Halo franchise, led by a new, purpose-built team separate from Call of Duty development. Halo Studios will continue to support existing titles like Halo Infinite and Halo: Campaign Evolved, and maintain the Halo community.
In addition to Halo, Activision will also oversee the development of the Sea of Thieves and Age of Empires franchises.
Ninja Theory Faces Potential Closure
The future of Cambridge-based game developer Ninja Theory is uncertain. Attempts to find a buyer for the studio, which produces the Hellblade games, have failed, with two separate agreements falling through. Ninja Theory will now enter into consultation with employees regarding a proposed closure.
Context of Ongoing Xbox "Reset"
These changes are part of an ongoing "reset" initiative by Xbox, which began over the summer. Xbox Chief Content Officer Matt Booty stated in an internal memo that the actions completed since July, including studio divestitures, bring the company roughly three-quarters of the way through previously announced restructuring efforts. The broader goal is to achieve greater efficiency and higher profit margins within the gaming division.
Updates
- Xbox CEO Asha Sharma stated that independent teams hindered shared goals.
- Halo Studios recently released Halo: Campaign Evolved.
- Activision President Rob Kostich stated their goal is to make the greatest Halo game ever.
✨ 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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How outlets covered it
Xbox has undergone a significant internal restructuring, placing the Halo franchise under Activision's management and reducing Halo Studios to a small community support team. This reorganization, which includes 268 new layoffs, aims to consolidate operations and improve collaboration across gaming units.
Xbox is laying off 268 employees and reorganizing its studio structure as part of an ongoing "reset" initiative. This includes Activision taking over development of the next Halo game and several studios becoming independent or merging, while Ninja Theory faces potential closure.
Xbox is cutting hundreds of jobs, transferring future Halo game development to Activision, and proposing the closure of Ninja Theory after acquisition attempts failed. These changes are part of a larger restructuring effort by Xbox to address financial challenges and slow growth in its gaming division.
Microsoft's Xbox division announced further restructuring, including 268 job cuts, studio consolidations, and reassignments of key franchises like Halo and Fallout. These changes are part of a broader "reset" aimed at focusing on major titles and reaching a wider audience, but they signal a significant shift for the Xbox brand.
Microsoft is restructuring its Xbox studios, transferring development of the next Halo title, Sea of Thieves, and Age of Empires to Activision, and laying off 268 employees. This move signifies a major shift in Microsoft's strategy for key gaming franchises and its internal studio organization.