Following on from the structural changes announced over the summer, Xbox has now confirmed that a further 268 roles across Halo Studios, other first-party studios, and the XGS “management and central functions layer” will be made redundant.
The news was revealed on Xbox Wire which posted an internal communication from Xbox COO Matt Booty. Booty also confirmed that the layoffs bring Xbox “roughly three-quarters of the way through previously announced restructuring”.
The communication also revealed that Xbox will undergo more structural changes with Activision now developing the next Halo title, “led by a new, purpose-built team that is separate from ongoing development and plans for Call of Duty,” and that a “small team at Halo Studios will continue supporting the Halo community and games in-market.”
Activision will also now take over development of World’s Edge and Rare, while Obsidian Entertainment, known for The Outer Worlds, and Fallout: New Vegas will become part of Bethesda, and that it’s current projects, including a new Fallout game, will continue.
Turn 10 Studios, who are the development team behind the Forza Motorsport games will now be merged with Playground Games who develop the Forza Horizon sub-series, essentially creating a single studio to develop the Forza titles going forward.
State of Decay 3 developer Undead Labs will also become fully independent from Microsoft, but the game will still release with day one access on Xbox Game Pass, just with a new publisher now that the studio is no longer in the Microsoft tent.
Finally, Booty confirmed that “two separate agreements” for Ninja Theory fell through and now Xbox will “begin consultation with employees on a proposed closure while continuing to explore other paths forward.” This suggests that the studio could be shuttered completely during the structural changes.