Microsoft is restructuring Xbox’s internal game studios to reduce organisational independence, simplify management and concentrate investment on priority franchises. Halo is moving under Activision, while several other studios are being consolidated or placed within larger publishing groups; the changes include 268 new layoffs.

Activision will also oversee Rare and World’s Edge, while Obsidian joins Bethesda and will work on Grounded and a new Fallout project. Playground Games and Turn 10 are merging, Microsoft is seeking buyers for Ninja Theory and Arkane, and the company says it is roughly three-quarters through its planned 3,200 layoffs.