Xbox is cutting another 268 roles as its sweeping reorganization moves forward, while Activision has been tapped to develop the next mainline Halo game.
Chief content officer Matt Booty announced the reductions in an internal memo to staff, saying the affected positions span Halo Studios, other first-party studios, and Xbox Game Studios management and central functions.
The cuts are part of a previously announced plan to reduce Xbox’s workforce by 3,200 roles. Booty said actions completed since July, including studio divestitures, have brought the company roughly three-quarters of the way through that restructuring.
“I am deeply grateful for what our colleagues have built, and I know how difficult today will be for those leaving and the teams around them,” Booty wrote.
Activision Takes On the Next ‘Halo’
The reorganization also delivers a major change for one of Xbox’s best-known franchises: Activision, the studio behind Call of Duty, will make the next Halo title.
The project is expected to be a full-featured, mainline installment. It will be led by a newly assembled, purpose-built team operating separately from Activision’s continuing development and plans for Call of Duty.
A smaller group at Halo Studios will remain in place to support the Halo community and games already in the market. Previous entries in the franchise were developed first by its creator, Bungie, and later by Halo Studios, formerly known as 343 Industries.
Activision’s expanded responsibilities will also include World’s Edge and Rare. Activision president Rob Kostich said the company had already begun assembling the team for the new Halo project.
“It’s an honor and a responsibility that we do not take lightly,” Kostich said of welcoming Halo, Rare and World’s Edge. “For Halo, our goal is clear: make the greatest Halo game ever, worthy of its universe and legacy, while staying true to what made players love it in the first place.”
Along with Call of Duty, Activision makes games in the Crash Bandicoot, Spyro the Dragon and Tony Hawk Pro Skater franchises.
Studios Consolidate Across Xbox
Booty said the wider overhaul is intended to strengthen Xbox’s franchises by reducing the number of business units, bringing together teams that already work closely and concentrating publishing expertise.
Bethesda will expand its remit to include Obsidian. Obsidian will continue working on its existing projects, including Grounded, as well as a new Fallout project being created in collaboration with Bethesda Game Studios.
King, the business behind Candy Crush, will take in Microsoft Casual Games, which includes Solitaire and Minesweeper. The move is designed to unite the two groups’ casual-game design and live-operations work.
Playground and Turn 10 will also combine into a single studio focused on the Forza and Fable franchises. Playground, associated with the Forza Horizon series, and Forza Motorsport developer Turn 10 have worked as creative and franchise partners for more than a decade, according to Booty.
Other parts of the reset involve studios moving outside the current Xbox structure. Compulsion and Double Fine returned to their management teams in August with their intellectual property, back catalogs and runway funding.
Undead Labs has now transitioned on similar terms. With a new publisher, the studio is set to release State of Decay 3 on Game Pass on its first day of availability.
Ninja Theory, meanwhile, faces a proposed closure after two separate agreements fell through. Xbox will begin consulting with employees while continuing to explore other possible paths for the studio. The process is therefore not described as complete.
Consultation involving Arkane also remains underway and is expected to continue through the end of the year.
What Happens Next?
Activision will move ahead with its purpose-built Halo development team, while the reorganized studios continue work on projects including Grounded, the new Fallout game, State of Decay 3, and titles connected to the Forza and Fable franchises.
Booty told employees he would spend time with Xbox studios over the following week. He also pointed to an all-Xbox town hall scheduled for October 6, when the company plans to review its progress and discuss what he called “one of the strongest game lineups in our history.”