Xbox confirmed a new restructuring of its video game division that includes the merger and closure of studios. There will also be changes in the structure of several developers.
The reorganization includes 3200 layoffs between July and the end of the fiscal year, June 30, 2027. Additionally, Halo, Rare, and World's Edge will come under the control of Activision.
Xbox confirmed a new restructuring of its video game division
Xbox reorganizes its studios: Halo moves to Activision and more changes are coming
The restructuring announced on September 22 modifies the internal organization of Xbox Game Studios. Some developers will move to Activision or Bethesda Softworks, while others will merge or could close.
Halo, Rare, and World's Edge move to Activision
Halo Studios, formerly known as 343 Industries, lost some of its staff, although it was not specified how many positions were affected. The Halo franchise will be in the hands of Activision, which will develop the next game.
Meanwhile, Halo Studios will continue to support the community and the games that are already available.
Halo, Rare, and World's Edge are now under Activision
Rare, responsible for Sea of Thieves and Banjo & Kazooie, and World's Edge, the studio responsible for Age of Empires, will also move to Activision.
Obsidian moves to Bethesda and will work on a new Fallout
Obsidian Entertainment, known for role-playing games like The Outer Worlds and Pillars of Eternity, will cease operations under Xbox Game Studios.
Obsidian moves to Bethesda and will work on a new Fallout
The studio will work alongside the developers at Bethesda Softworks, while continuing with its projects and the development of a new Fallout.
This structure includes Bethesda Game Studios, ZeniMax Online, and id Software. The future of Arkane Lyon is still undefined, as it continues negotiations with Xbox.
What will happen with Turn10 and Microsoft Casual Games
Turn10, responsible for Forza Motorsport and the technology used by the series' games, will be integrated into Playground Games.
Forza Motorsport
Playground Games develops Forza Horizon and the upcoming Fable. The integration changes the structure under which Turn10 will operate.
On the other hand, King, developer of Candy Crush, will absorb Microsoft Casual Games. According to Microsoft, the operation will unite its two teams related to the development of casual games and titles as a service.
King, developer of Candy Crush, will absorb Microsoft Casual Games
Ninja Theory is heading towards closure and Undead Labs will be independent
Ninja Theory, responsible for Hellblade and the recently announced Senua, was unable to formalize either of the two agreements it had as a possibility.
For this reason, the studio is heading towards closure. In contrast, Undead Labs achieved its independence and will publish State of Decay 3 with a publisher that has yet to be defined.
The agreement stipulates that State of Decay 3 will maintain its arrival on Game Pass from launch.
Ninja Theory is heading towards closure
Xbox has already completed three-quarters of the layoffs
Matt Booty, head of Xbox Game Studios, reported that the restructuring from September 22 affected 268 workers from Halo Studios, other first-party developers, and executive positions at XGS.
According to Booty, the measures taken since July, including divestments in studios, represent approximately three-quarters of the restructuring previously announced.
Xbox has already completed three-quarters of the layoffs
The plan includes a total of 3200 layoffs between July and the end of the fiscal year, scheduled for June 30, 2027.
On October 6, Booty will meet with all Xbox employees to report on the progress of the restructuring and discuss the company's next steps.
