Xbox lay off 268 people as Activision take over Halo and Rare, while Obsidian become part of Bethesda, plus Forza and Fable studios merge

Well, there you go. Xbox have enacted a second round of layoffs and internal upheaval this year, following July's initial shooting of 1600 staff into the sun and parting ways with multiple studios.

This time, 268 staff have been let go, while a bunch of studios still under the Xbox umbrella have been folded into or underneath each other. Meanwhile, the Halo series has been handed to Activision.

"We are eliminating 268 roles across Halo Studios, other first-party studios, and the XGS management and central functions layer," Xbox chief content officer Matt Booty wrote in a message sent to Xbox staff and subsequently published on Xbox Wire. "The actions completed since July, inclusive of the studio divestitures, bring us roughly three-quarters of the way through previously announced restructuring."

He went on to outline that Xbox are "reorganizing" their studios with this round of cuts. The aim's "to strengthen [Xbox's] franchises and games by operating fewer business units, aligning groups that already work closely together, and focusing our publishing expertise".

Activision are being given custody of Age of Empires devs World’s Edge and Sea of Thieves makers Rare, in addition to custody of the Halo series. A "new, purpose-built team that is separate from ongoing development and plans for Call of Duty" will develop the next Halo entry, with the remaining shadow of Halo Studios "supporting the Halo community and games in-market".

In a move foreshadowed by the former studio having their efforts redirected to a new Fallout game following the July layoffs, The Outer Worlds and Avowed developers Obsidian have been slotted into Bethesda. Meanwhile, Forza and Fable makers Playground Games and Turn 10 Studios have been merged together into one studio putting together new entries into those two series. Finally, mobile juggernaut King have eaten up Microsoft Casual Games, developers of the company's solitaire, sudoku and mahjong apps.

Booty also provided an update on the studios Xbox decided to part ways with back in July. Sadly, Hellblade devs Ninja Theory are consulting on a likely closure after having two deals to buy them up fall through. Undead Labs have managed to avoid that fate, much like Compulsion Games and Double Fine, and found a new publisher for State of Decay 3. The destiny of Dishonored developers Arkane is still up in the air, with consultation over the studio's future "expected to continue through the end of the year".

Solidarity to all the developers affected by this round of Xbox layoffs and cuts. Xbox parent company Microsoft are still currently subject to a BDS movement boycott over their reported ties to the Israeli military.