Xbox Nears Completion of Major Restructuring, Streamlining Studios and Reducing Workforce by 268 While Engaging with Ninja Theory

Today, Xbox is set to let go of 268 employees as part of its ongoing organizational “reset,” which includes consolidating several studios and entering discussions with Senua’s Studio Ninja Theory.

In a post on Xbox Wire, Matt Booty, the executive VP and chief content officer at Xbox, announced that job cuts will affect “Halo Studios, other first-party studios, and the XGS management and central functions layer.” This move is part of a broader restructuring effort that Booty claims is now three-quarters complete.

Previously, Compulsion Games and Double Fine became independent from Xbox, taking their back catalogs and intellectual properties with them. Undead Labs has also transitioned to independence, with plans to launch State of Decay 3 on Game Pass at its release.

However, two agreements involving Senua’s Studio Ninja Theory have fallen through, prompting it to enter consultations alongside Arkane, which is still navigating the process.

Additionally, several studios will be merged. Rare will join Activision along with the Age of Empires studio, World’s Edge, while Activision will form a new team to oversee the next Halo game. 343 Industries will retain a small staff to support existing Halo titles and the community but will not be developing a new installment.

Obsidian will merge with Bethesda, continuing work on Grounded and its upcoming Fallout project. Microsoft Casual Games will join forces with King, and Playground and Turn 10 will combine efforts to focus on both Forza and Fable.

“Today, our priority is to support those affected and treat each other with care and respect,” Booty stated. “I will spend time with our studios over the next week. At our October 6 town hall, we will unite as an ALL-XBOX team to reflect on our progress and look forward to one of the strongest game lineups in our history.”

An additional statement from Activision president Rob Kostich expressed excitement about welcoming Halo, Rare, and World’s Edge to Activision, emphasizing the honor and responsibility that comes with it.

For Halo, the goal is clear: to create the greatest Halo game ever, honoring its legacy while staying true to what players love about it. This ambitious vision is one that the franchise deserves, and a dedicated team is already being assembled to deliver this next chapter alongside the community.

To the teams at World’s Edge and Rare, there is eagerness to begin collaboration.