Xbox is undergoing a major restructuring intended to cut 20% of its workforce over 12 months, with further studio closures, job losses and transfers reshaping its gaming business. The changes are reducing Xbox Game Studios’ role while placing greater responsibility on Activision, Bethesda and Blizzard.

– Xbox announced 268 additional job cuts on 22 September, following thousands of earlier redundancies.
– Ninja Theory faces closure after Xbox failed to find a buyer; negotiations to sell Arkane will continue through 2026.
– Activision will take responsibility for World’s Edge, Rare and Halo, while Halo Studios has reportedly been reduced to a small support team.
– Blizzard remains largely protected from cuts, with major World of Warcraft, Diablo and StarCraft projects planned.
– King will oversee Microsoft Casual Games, including Solitaire and Mahjong, strengthening Xbox’s focus on mobile and casual gaming.
– Bethesda has absorbed Obsidian, which is working on the next Fallout game, while Bethesda continues developing The Elder Scrolls 6.
– Significant cuts have already affected id Software and ZeniMax Online Studios.