Key facts
- Xbox is cutting hundreds of jobs as part of a company-wide restructure.
- Activision will take over development of future Halo games.
- Halo Studios will continue to support the existing Halo game and its community.
- Ninja Theory studio is facing proposed closure after buyout talks failed.
- Xbox has already cut 1,600 jobs as part of a planned 3,600 losses.
- Activision's remit will expand to manage World's Edge studio (Age of Empires) and Rare (Sea of Thieves).
Xbox is implementing significant changes to its gaming operations, including hundreds of job cuts and a shift in development for its flagship Halo franchise. Activision, the publisher of Call of Duty, will now be responsible for developing future Halo games, while Halo Studios will focus on supporting the existing game and its community. This move is part of a broader restructuring within Microsoft's gaming division, which has seen substantial layoffs and a reassessment of studio operations.
In addition to the Halo franchise changes, Xbox is also addressing the future of other studios. Ninja Theory, the BAFTA-winning developer behind the Hellblade games, is facing proposed closure after two separate buyout agreements fell through. While three other affected companies have returned to management, consultation for Arcane is ongoing. These actions follow an earlier announcement of 1,600 job cuts in July, as part of a planned total of 3,600 losses, with Xbox leadership citing that the division had not been "healthy" and growth had not been rapid enough.
Activision's expanded role will also include managing the World's Edge studio, known for the Age of Empires franchise, and Rare, the studio behind Sea of Thieves. Xbox is also consolidating other studios, with Bethesda set to encompass Obsidian, and the studios behind Forza Horizon and Fable being combined. Gaming industry analysts have described the shift in Halo development as a "dramatic move" that raises questions about reviving the franchise, which was once considered Xbox's "crown jewel" but has seen its prominence diminish over the years.