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Microsoft is restructuring its Xbox organization by placing the Halo, Sea of Thieves and Age of Empires franchises under Activision, while eliminating 268 roles across Halo Studios, other first-party studios and central Xbox functions.
Activision Takes On Halo
Activision will develop the next flagship Halo game through a new team separate from its Call of Duty work. Halo Studios, formerly 343 Industries, will continue supporting existing games including Halo Infinite and Halo: Campaign Evolved, but the source does not provide a release date or further details about the new project.
The change follows years of leadership changes and layoffs at Halo Studios, and comes less than two years after Microsoft moved Halo development to Unreal Engine 5.
More Studio Realignment
Activision will also take responsibility for World’s Edge, the Age of Empires studio, and Rare’s Sea of Thieves work. Bethesda will expand its remit to include Obsidian, which will continue current projects such as Grounded and collaborate with Bethesda Game Studios on a new Fallout project.
Playground Games and Turn 10 Studios will merge into one team focused on Forza Horizon and Fable. Microsoft Casual Games, including Solitaire, Mahjong and Minesweeper, will move from Bethesda to King.
Cuts And Proposed Closures
Microsoft says the latest cuts bring the total number of roles affected by Xbox restructuring to nearly 1,900. The company previously said 3,200 roles could be affected during its 2027 financial year, which ends in June 2027, leaving more than 1,000 roles still to be announced according to the source.
Ninja Theory is entering employee consultation over a proposed closure after two separate agreements fell through, although Microsoft says it is still exploring other options. Consultation involving Arkane remains underway. The source does not establish whether Rare or World’s Edge will also face layoffs.
Source: Activision is taking over Halo as part of a massive Xbox shake-up
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