- Primary Subject: Xbox's New Round of Layoffs and Restructuring
- Key Update: Xbox has announced more layoffs affecting Halo Studios, with the Halo franchise now going under Activision's umbrella.
- Status: Confirmed
- Last Verified: September 22, 2026
- Quick Answer: After much speculation over the last few hours, Xbox has confirmed more layoffs are on the way, along with major restructuring across its studios.
The major Xbox restructuring, now referred to as the "Xbox reset", that started earlier this year continues, with more layoffs and changes on the way.
In a new memo shared with Xbox employees and posted online, Xbox's CCO Matt Booty confirmed that 269 roles are being eliminated across Halo Studios, other first-party studios, and the XGS management and central functions layer.
"I am deeply grateful for what our colleagues have built, and I know how difficult today will be for those leaving and the teams around them," said Booty.
On top of that, the company is reorganizing many of its studios and, as a result, Activision will now be in charge of the next Halo title, as the studio will form a new team separate from ongoing development and plans for Call of Duty to handle the task.
After years of being synonymous with each other, two of the most iconic franchises in the FPS genre will now be under one roof. Halo Studios will continue running with a small team that will "continue supporting the Halo community and games in-market."
These are the rest of the changes as part of the restructure:
- Activision will now be in charge of World's Edge, the Age of Empires developer, as well as Rare.
- Bethesda will now be in charge of Obsidian.
- King will be in charge of Microsoft Casual Games.
- Playground (Forza developer) and Turn 10 (Fable) will now merge into one studio that focuses on both franchises.
The memo also touched on the state of the studios that were let go from Xbox Game Studios earlier this year. While Compulsion, Double Fine, and Undead Labs are back to work, Booty revealed that two separate agreements for Ninja Theory, the studio behind the Hellblade franchise, have fallen through.
The studio is now at risk of closure, as Xbox will now assess their options and see if there is another path forward. This would mean that Senua, the third title in the franchise announced in June, is now at risk of being cancelled.
Arkane, the studio behind the upcoming Blade title, is still in consultation, and this is expected to last until the end of the year. The letter doesn't mention what plans Xbox is considering regarding the studio's future.
READ MORE: id Software Reportedly Developing New DOOM Game Despite Deep Xbox Layoffs
What do you think of the Halo franchise moving under Activision?
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