The Xbox Reset Continues with Multiple Studios Reorganised, Halo Moving

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Jon "Sikamikanico" Clarke

16 minutes ago

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Microsoft have announced further changes ahead for Xbox, continuing the ‘reset’ that kicked off earlier this year. Beyond the continuing but nonetheless eye-watering layoffs that have primarily impacted Halo Studios this around, they’re also consolidating teams, moving World’s Edge and Rare under the Activision Publishing umbrella.

The Story so Far

Three months ago, after a fantastic Xbox Games Showcase, Microsoft began making broad and sweeping changes to the Xbox division, with Xbox CEO Asha Sharma calling it the ‘most significant restructure in Xbox history‘ as she looked to ‘reset Xbox’ across hardware and software.

As part of this restructure, Xbox cut 20% of roles across the division, with 1600 affected immediately, and an additional 1600 set to be cut across the upcoming financial year, which ends on June 30th, 2027.

Beyond that, the changes also saw 5 studios divested. Double Fine and Compulsion Games returned to independence, and Undead Labs and Ninja Theory were sold to new owners. Arkane Lyon, currently working on Blade, is going through the necessary legal processes in France to also seek new ownership.

Per the blog post, while Undead Labs has found new ownership, Ninja Theory hasn’t found success in finding a buyer, with two separate agreements falling through. As such, a consultation process is now beginning on a ‘proposed’ closure, while ‘exploring other paths forward.’ Arkane’s future still remains unknown, with the existing consultation ongoing.

What Happens Next

In a new blog post on Xbox Wire, the next set of changes have been detailed, from those continuing job cuts to some surprising organisational changes across Xbox.

Let’s deal with the layoffs first.

Xbox have announced that 268 roles are being eliminated from Halo Studios and other first party teams, with a Halo new title is being built by Activision, ‘led by a new, purpose-built team that is separate from ongoing development and plans for Call of Duty.‘ A small number of Halo Studios employees will remain on hand to continue supporting the community and games currently released.

Now lets talk studios.

Activision are expanding their responsibilities, pulling in both World’s Edge and interestingly, Rare under the Activision umbrella. As previously mentioned, a new Halo team is being set up to develop, with the majority of Halo Studios now seemingly disbanded.

Bethesda will now be looking after Obsidian, which makes perfect sense, as they gear up for new projects in Fallout, and continue their work on Grounded 2.

King, the mobile division, is going to now include Microsoft casual games, which Xbox says unites ‘two global leaders in casual game design and live operations.‘

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