Xbox layoffs and consolidation – Activision get Halo, Bethesda gets Obsidian, Ninja Theory could shut down

With a slew of rumours sprouting in the last day or so, Xbox CEO Asha Sharma has confirmed the latest adjustments, shakeups and layoffs across Microsoft’s gaming business.

Halo Studios is named as being affected by the 268 layoffs that will affect it, and some roles across other first party studios, and Xbox Game Studios management. This is “roughly three-quarters of the way through previously announced restructuring.” So expect some more layoffs in future.

She also confirmed that Compulsion and Double Fine returned to management retaining their IP, back catalogs, and with some runway funding. Undead Labs has also has a new publisher for State of Decay 3. Unfortunately, Ninja Theory hasn’t found fresh backing after two agreements fell through, leaving it at significant risk of closure. French studio Arkane is still going through their legal consultations.

But then there’s also a big structural reorganisation, putting more eggs into Activision’s basket, most significantly with the Halo franchise, though this will be through “a new, purpose-built team” separate to Call of Duty, as opposed to handing it to Sledgehammer or Raven or the like. Obsidian is then being folded into Bethesda, following on from their new Fallout project announcement, and Playground and Turn 10 will merge – the latter having been gutted after Forza Motorsport’s shutdown.

Here’s their breakdown.

• Activision will expand its remit to [Age of Empires developer] World’s Edge, as well as Rare. Activision will also be developing the next Halo title, led by a new, purpose-built team that is separate from ongoing development and plans for Call of Duty. A small team at Halo Studios will continue supporting the Halo community and games in-market.
• Bethesda will expand its remit to include Obsidian, which will continue its current projects, including Grounded, as well as the new Fallout project made in collaboration with Bethesda Game Studios.
• King will expand its remit to include Microsoft Casual Games, uniting our two global leaders in casual game design and live operations.
• Playground and Turn 10 will come together as one studio focused on the Forza and Fable franchises. These two studios have been creative and franchise partners for over a decade, and today’s changes will formally move their work into one team.

Source: Xbox

Tags: 343 Industries, Activision, Halo Campaign Evolved, Halo Studios, Ninja Theory