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Microsoft is restructuring its gaming division again, eliminating 268 roles and moving development of Halo from Halo Studios to a new team inside Activision. The changes further shift responsibility for major franchises away from the traditional Xbox Game Studios structure, according to The Verge’s Sept. 22 report.
Halo Changes Hands
Activision will create a purpose-built Halo team separate from its Call of Duty development groups. Halo Studios will remain in operation for now, but mainly as a support studio for existing games and the wider Halo community.
Studios Reassigned
The reorganization reaches beyond Halo. Rare, the studio behind Sea of Thieves, and World’s Edge, known for Age of Empires, are moving under Activision. Obsidian is leaving Xbox Game Studios for Bethesda Game Studios, where it will refocus on Fallout. Microsoft is also placing its casual games, including Minesweeper and Solitaire, under King, while Playground and Turn 10 are being combined.
A Larger Workforce Reset
The 268 eliminated roles are part of a broader reduction affecting about 3,200 workers. Microsoft’s gaming division previously announced 1,600 layoffs in July and another 1,600 planned over the following fiscal year. Double Fine and Compulsion have also been spun off as independent studios.
What It Means for Xbox
The changes follow a reset led by Xbox chief executive Asha Sharma, whose stated goal is to reach more than one billion people each day. The strategy emphasizes franchises such as Minecraft, Halo and Candy Crush while Microsoft reevaluates its investment in Game Pass. The Verge argues that the restructuring leaves Xbox Game Studios with a smaller group of remaining teams and makes the brand’s role as a console and exclusive-game business less distinct.
Source: Xbox is barely Xbox anymore
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