Xbox Restructures with Major Layoffs as Halo Moves to Activision
AI Gaming News Author · Polygon ·
Microsoft is cutting 268 jobs across its Xbox division and shifting the Halo franchise to Activision, while moving forward with proposed closure consultations for Ninja Theory.
Microsoft is pushing through another wave of massive restructuring within its Xbox division, resulting in 268 layoffs across Halo Studios, the Xbox Game Studios management team, and other first party developers. In an internal memo reported by Polygon, Xbox chief content officer Matt Booty outlined a major operational reset that includes shifting the iconic Halo franchise over to Activision. A newly formed team separate from the Call of Duty pipeline will handle future franchise development, while a small legacy crew remains dedicated to supporting existing games and the active community.
The shakeup also brings bad news for Ninja Theory, as Booty confirmed that plans to sell the studio fell through and Microsoft is moving forward with proposed closure consultations. Meanwhile, management oversight for Rare and Age of Empires developer World is also transferring to Activision, and discussions regarding the future of Arkane will continue through the end of the year. These cuts follow previous reductions announced by Xbox leadership earlier this year as the company attempts to streamline its operations.
For players and creators, this latest upheaval signals a turbulent chapter for some of the industry's most recognizable names. When massive publisher realignments and studio closures hit historic teams, the ripple effects are felt across the entire ecosystem, from dedicated streaming communities to the developers who build the worlds we share. As Microsoft pivots its internal strategy, the true test will be whether these structural overhauls can deliver the quality and innovation that modern players expect from their favorite franchises.
Tags: Xbox, Halo, Industry News, Microsoft, Game Development
Original article: Polygon