Activision is taking over Halo as part of a massive Xbox shake-up
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Microsoft is reorganising Xbox’s studios, with Activision now taking responsibility for the next flagship Halo game, as well as Sea of Thieves and Age of Empires. The changes include 268 further job cuts, significant disruption at Halo Studios and the likely closure of Ninja Theory, marking a major shift in control of several prominent franchises.
Halo Studios will continue supporting existing games, including Halo Infinite and Halo: Campaign Evolved, while Activision assembles a separate team for the next mainline title. Other changes include Obsidian moving to Bethesda to work on a new Fallout game, Turn 10 and Playground Games merging around Forza Horizon and Fable, and Microsoft’s casual games unit transferring to King. The latest cuts bring Xbox-related job losses to nearly 1,900 out of a previously announced 3,200 roles expected to be affected by June 2027.
- Activision will develop the next flagship Halo game.
- Xbox is cutting another 268 jobs.
- Several studios and major franchises are being reorganised.
Full account
Microsoft is pursuing a substantial reorganisation of its gaming operations, announcing further far-reaching structural changes across multiple development studios. This latest round of alterations represents a continuation of what the company has characterised as its most significant Xbox restructuring in history, building upon earlier redundancy announcements that have cumulatively affected thousands of employees.
The most significant development involves Call of Duty publisher Activision assuming full development responsibility for the next major instalment of the Halo franchise, departing from the current arrangement whereby Halo Studios manages the series. The existing Halo Studios will transition to a maintenance role, supporting the existing player community and maintaining current titles including Halo Infinite and the recently released Halo: Campaign Evolved. Industry observers have underscored the substantial implications of this shift, particularly given Halo's foundational importance to the Xbox brand since Microsoft's market entry in 2001.
The organisational restructuring extends considerably beyond Halo. Activision is simultaneously acquiring control of Sea of Thieves, with Rare's United Kingdom development workforce transitioning under Activision's remit. The Age of Empires studio World's Edge is likewise moving under Activision's oversight, whilst Obsidian Entertainment has been repositioned to collaborate with Bethesda on a forthcoming Fallout project. Concurrently, Turn 10 Studios and Playground Games are consolidating into a single entity focused on future Forza and Fable releases.
Approximately 268 redundancies form part of this announcement, layered atop the 1,600 staff reductions disclosed in July as part of the broader restructuring initiative. Microsoft has indicated that the gaming division is now approximately three-quarters through a planned restructuring affecting 3,600 roles in total. The company's leadership has attributed the necessity for these changes to inadequate growth in platforms including its Game Pass subscription service, alongside external pressures from escalating hardware and computing costs. Cambridge-based Ninja Theory, the BAFTA-award-winning developer behind the Hellblade series, faces a proposed closure following unsuccessful efforts to identify an external purchaser for the studio.
Where outlets differ
Source 1 emphasises specific studio transitions and personnel departures (Craig Duncan, Louise O'Connor), whilst Source 2 prioritises Ninja Theory's closure prospects and executive justifications for the restructuring.
Source 2 provides strategic context through executive commentary regarding Xbox division health and market growth failures; Source 1 focuses on completed studio reassignments.
Source 1 references additional moves (casual games portfolio to King, Obsidian to Bethesda) not detailed in Source 2.
Source 2 frames the changes within a broader company-wide 'reset' narrative with historical perspective; Source 1 treats announcements as discrete studio realignments.
Source 2 incorporates third-party analyst perspectives questioning Halo's revival prospects; Source 1 relies solely on official corporate statements.
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