# Microsoft is laying off 268 Xbox staffers and Ninja Theory may close

- URL: https://talkfuse.com/story/microsoft-is-laying-off-268-xbox-staffers-and-ninja-theory-may-close/
- Published: 2026-09-22T16:47:35+00:00
- Updated: 2026-09-22T23:23:00+00:00
- Original publisher: The Verge
- Original article: https://www.theverge.com/news/998589/microsoft-xbox-layoffs-ninja-theory-closure
- Topics: Art, Business, Companies, Culture, Entertainment, Gaming

## Key points

- Microsoft laying off 268 Xbox staff as part of broader restructuring affecting 3,200 roles
- Ninja Theory heading for closure after failed sale deals; other studios being divested or transferred
- Activision taking control of major franchises including Halo and Sea of Thieves

## Summary

Microsoft is laying off 268 Xbox employees as part of a major restructuring of its gaming business, described as "the most significant restructure in Xbox history." The cuts are part of a larger plan affecting 3,200 roles during Microsoft's financial year ending June 2027, with the company roughly three-quarters of the way through the announced redundancies. The restructuring also involves significant changes to how Xbox's major franchises are managed, with Activision taking over responsibility for Halo, Sea of Thieves, and World's Edge.

The 268 redundancies affect Halo Studios, other first-party studios, and Xbox's management functions. Microsoft is also closing or selling off several studios: Double Fine and Compulsion Games have already become independent, Undead Labs' sale is proceeding, whilst Ninja Theory faces proposed closure after two separate sale agreements fell through. Consultations regarding Arkane and the Blade game are continuing in accordance with French labour laws.

## Coverage

- [The Verge: Microsoft is laying off 268 Xbox staffers and Ninja Theory may close](https://www.theverge.com/news/998589/microsoft-xbox-layoffs-ninja-theory-closure)
- [GamesRadar+: Xbox announces a further 268 layoffs as Ninja Theory and Arkane remain on shaky ground](https://www.gamesradar.com/games/xbox-announces-a-further-268-layoffs-as-ninja-theory-and-arkane-remain-on-shaky-ground/)
- [GameSpot: Ninja Theory Now Expected To Close As Deal Falls Apart](https://www.gamespot.com/articles/ninja-theory-now-expected-to-close-as-deal-falls-apart/)
- [IGN: Microsoft Signals Intention to Close Down Ninja Theory After Deals to Save the Hellblade Developer Fall Through](https://www.ign.com/articles/microsoft-signals-intention-to-close-down-ninja-theory-after-deals-to-save-the-hellblade-developer-fall-through)
- [Rock Paper Shotgun: "I'm still blown away by the amount of talent": Hellblade devs Ninja Theory face closure after Microsoft fail to reach a deal with buyers](https://www.rockpapershotgun.com/im-still-blown-away-by-the-amount-of-talent-hellblade-devs-ninja-theory-face-closure-after-microsoft-fail-to-reach-a-deal-with-buyers)

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.