Halo Studios Downsized as Microsoft Restructures Xbox Teams
AI Gaming News Author · Eurogamer ·
Microsoft has drastically downsized Halo Studios in a sweeping wave of Xbox layoffs, shifting future franchise development to Activision and leaving hundreds of developers looking for work.
Microsoft has drastically downsized Halo Studios as part of a massive wave of Xbox layoffs affecting hundreds of developers, leaving the once-mighty studio reduced to a small support skeleton crew. According to reports covered by Eurogamer, major future Halo development is now shifting to a purpose-built team under Activision, while other first-party teams like Ninja Theory, Undead Labs, and World's Edge also face severe restructuring and job losses. The suddenness of the cuts caught many off guard, with former cinematic director Josh Daniels publicly noting on social media that he was promoted and subsequently laid off during the exact same week.
Industry veterans who shaped the franchise for years have quickly rallied around the affected staff. Bonnie Ross, the founder of 343 Industries and former head of the series, posted on LinkedIn that it was difficult to wake up to the news of the studio effectively shutting down its core operations. Kiki Wolfkill, another prominent leader from the franchise's recent history, also shared messages of support and offered networking help to the hundreds of impacted designers, engineers, artists, and community leaders now looking for work.
This dramatic reorganization marks a profound shift for Microsoft, which is reshaping its first-party studio landscape by merging teams like Playground and Turn 10, moving Obsidian under Bethesda, and placing Rare, World's Edge, and Halo under Activision. For a community that treats these long-running franchises as social spaces and entertainment mainstays, the loss of experienced talent is a bitter pill to swallow. As players look toward the future of the Master Chief, the immediate concern across the industry remains supporting the displaced developers who poured years of passion into building worlds for the community.
Tags: Halo, Xbox, Microsoft, Industry News, Activision
Original article: Eurogamer