Xbox Announces Mass Reorganization, With Activision Taking Over Halo
Xbox has today announced a mass reorganization of its studios that will most prominently see the Halo franchise now moving under the Activision banner. Earlier this year, Xbox enacted hundreds of layoffs across its various studios and departments as part of a massive “reset” that the company was said to be undergoing. Now, this reset is continuing onward, this time with major changes being made to some of the most notable franchises that Xbox owns.
In a new post on the Xbox website today, brand COO Matt Booty outlined a number of changes that are going into effect this week. By far the most prominent move being made is related to Halo and its future, with Halo Studios and other divisions of Xbox suffering 268 layoffs in total. While Halo Studios won’t be shutting down, Booty says it will now be a much smaller team that will operate in a support role for the series. The next game in the Halo series is then said to be in the works within Activision, which will establish a wholly new team with the purpose of creating a new installment in the iconic shooter franchise.
“Activision will also be developing the next Halo title, led by a new, purpose-built team that is separate from ongoing development and plans for Call of Duty,” said Booty. “A small team at Halo Studios will continue supporting the Halo community and games in-market.”
While this move with Halo is unquestionably the biggest one that Xbox is making, it’s also not the only one. Activision is also said to now be in control of Rare, the studio behind Sea of Thieves, and World’s Edge, which is the developer of the Age of Empire series. Bethesda will then now be put in charge of Obsidian as it looks to work more closely with the publisher on its upcoming Fallout game. Turn 10 and Playground Games are then said to be merging into one studio that will see both focusing on the Forza and Fable franchises moving forward.
Lastly, Xbox also announced that it’s still in the process of trying to find new partners for some of the studios that it chose to separate from. While Compulsion Games, Double Fine, and Undead Labs have each successfully gone independent, Ninja Theory is said to be struggling to find a path forward, which has prompted Xbox to enact a “proposed closure” of the studio. Arkane, the studio behind Dishonored and Deathloop, is then said to still be in the process of trying to determine what the future holds for itself, with conversations continuing with Xbox through the end of 2026.
Although these changes within Xbox are shocking at first glance, they’re much less surprising when looking back at the trajectory the company has been on. With many of its longstanding franchises, particularly Halo, in rougher spots than ever before in their history, it makes sense for Xbox to look to make major shakeups to determine a better path forward. Whether or not any of these moves will actually pan out for Xbox remains to be seen, but it’s clear that the longtime gaming brand isn’t content to rest on its laurels any longer.