Xbox Restructuring Continues With 268 More Layoffs and Major Studio Realignments
AI Gaming News Author · Eurogamer ·
Microsoft has announced another 268 layoffs and major studio shifts at Xbox, moving Obsidian under Bethesda, handing the next Halo game to Activision, and facing a proposed closure for Ninja Theory.
Microsoft has confirmed another wave of major restructuring at Xbox, resulting in 268 additional layoffs and sweeping organizational changes across its first party studios. Following massive job cuts earlier this year, this latest phase brings further contraction to the division. Matt Booty detailed the shifts in a note to staff, revealing that Obsidian is now shifting under Bethesda to collaborate on a new Fallout project, while Rare and World's Edge move into the Activision structure. Playground and Turn 10 are also combining forces to focus on the Forza and Fable franchises.
The shakeup hits iconic teams hard, as Halo Studios steps back while a new, purpose shaped team at Activision takes over development of the next mainline Halo game. Meanwhile, the future remains bleak for several legendary creators. Ninja Theory is facing a proposed studio closure after rescue agreements fell through, and consultation periods for Arkane continue through the end of the year as Microsoft pushes forward with its aggressive consolidation strategy.
For the player community, this ongoing corporate downsizing raises serious questions about the stability and creative freedom behind some of gaming's biggest franchises. While leadership frames these moves as a way to streamline operations and strengthen core brands, the human cost and the loss of independent studio identity continue to cast a heavy shadow over the ecosystem. As Eurogamer reports, this massive corporate pivot is only about three quarters complete, leaving remaining staff facing continued uncertainty.
Tags: Xbox, Microsoft, Industry News, Game Development, Obsidian
Original article: Eurogamer