Xbox has announced it's eliminating 268 roles and reorganizing its studios as part of the ongoing "Xbox reset," according to a message sent to Team Xbox employees globally today. The changes consolidate Halo development under Activision and merge Playground Games and Turn 10 into a single studio for the Forza and Fable franchises.
Let's break down everything that's changing.
How many jobs are being cut?
Xbox says it's cutting 268 roles across Halo Studios, other first-party studios, and the Xbox Game Studios management and central functions layer. According to the memo, the actions completed since July, including the studio divestitures, bring Xbox roughly three-quarters of the way through its previously announced restructuring.
Which studios are being reorganized?
Xbox says the goal of the reorganization is to strengthen its franchises and games by operating fewer business units, aligning groups that already work closely together, and focusing its publishing expertise. Here's how the studios are being realigned:
Activision will expand its remit to World's Edge and Rare. Activision will also develop the next Halo title, led by a new, purpose-built team that is separate from ongoing development and plans for Call of Duty. A small team at Halo Studios will continue supporting the Halo community and games in-market.
Bethesda will expand its remit to include Obsidian, which will continue its current projects - including Grounded, as well as the new Fallout project made in collaboration with Bethesda Game Studios.
King will expand its remit to include Microsoft Casual Games, uniting Xbox's two global leaders in casual game design and live operations.
Playground Games and Turn 10 will come together as one studio focused on the Forza and Fable franchises. The two studios have been creative and franchise partners for over a decade, and these changes formally move their work into one team.
What's happening with the studio divestitures?
Xbox also provided an update on its ongoing divestitures. In August, Compulsion Games and Double Fine returned to management with their IP, back catalogs, and runway funding. Undead Labs has now transitioned on similar terms and, with a new publisher, will release State of Decay 3 day one on Game Pass.
It's not all good news, though. Xbox says two separate agreements for Ninja Theory fell through, and it will now begin consultation with employees on a proposed closure while continuing to explore other paths forward. Consultation with Arkane remains underway and is expected to continue through the end of the year.
What happens next?
Xbox says its immediate focus is on supporting those affected and treating one another with "care and respect". The memo notes that leadership will spend time with the studios over the following week, and that an October 6 town hall will bring the company together to reflect on its progress and look ahead to what it calls one of the "strongest game lineups in [its] history".
What do you make of Xbox handing the next Halo to Activision and merging Playground and Turn 10? Let us know in the comments.
Leave a Comment