Xbox Confirms Job Losses and Studio Changes, Activision to Make Next Halo Game

Halo Studios loses roles, Obsidian now under Bethesda

by · Push Square

Microsoft has now confirmed the rumours of the next wave of job layoffs within its Xbox division, as well as important changes to its internal studio makeup.

At a top level, 268 employees are losing their jobs across Halo Studios, other first-party developers, and the Xbox Game Studios management and central functions layer. These cuts are part of Xbox's previously announced "Reset" plans, and Matt Booty says in an Xbox Wire article the firm is roughly three-quarters of the way through that process.

Today's update also brings structural changes to developers under Xbox:

  • Rare and World's Edge are now part of Activision
  • Obsidian is now part of Bethesda
  • Microsoft Casual Games is now under King
  • Playground Games and Turn 10 Studios are merging into one developer

Another key piece of information is the next Halo game is now being created at Activision, not Halo Studios. "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," Microsoft said. "A small team at Halo Studios will continue supporting the Halo community and games in-market."

Microsoft also provided an update on the studios it let go of during the last wave of layoffs. State of Decay 3 developer Undead Labs has successfully found a new publisher, as previously reported. However, talks with two different firms for the Hellblade team, Ninja Theory, have failed.

Microsoft is now beginning talks to close Ninja Theory. It also remains in consultation talks with Dishonored developer Arkane.

"Today, our focus should be on supporting those affected and treating one another with care and respect. I will spend time with our studios over the next week," Booty concluded. "At our October 6 town hall, we will come together as an ALL-XBOX team to reflect on our progress and look ahead to one of the strongest game lineups in our history."

[source news.xbox.com]