Microsoft is merging Playground Games and Turn 10 Studios into a single combined studio as part of a major Xbox restructuring. The two studios, which have worked as partners for over a decade, will now focus their efforts on the Forza Horizon and Fable franchises. This consolidation raises significant uncertainty about the future of Forza Motorsport, as it remains unclear whether Microsoft intends to continue supporting the franchise or redirect resources solely to Forza Horizon.

Turn 10 Studios has already been heavily impacted by staffing reductions, with more than 70 employees laid off last year—representing the vast majority of the studio's workforce. Over the past twelve months, the studio has primarily been maintaining Forza Motorsport rather than developing new content. The merger is part of a broader Xbox reorganisation that includes Activision assuming control of the Halo franchise, alongside restructuring involving Sea of Thieves developer Rare and World's Edge, the studio behind Age of Empires.