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Microsoft Cuts Hundreds More Jobs, Shifts Next ‘Halo’ Game to Activision in Xbox Overhaul

Xbox says the cuts are part of a broader reset to reduce costs and consolidate studios while keeping a small Halo support team in place.

  • On Tuesday, Xbox announced the elimination of 268 roles across Halo Studios, other first-party studios, and XGS management as part of a previously announced organizational "reset" that chief content officer Matt Booty says is nearing completion.
  • The company aims to reduce total staff size by 3,200 as part of ongoing restructuring; Xbox divested studios including Compulsion Games, Double Fine, and Undead Labs, which will release State of Decay 3 on Game Pass.
  • Activision will develop the next Halo title using a new, purpose-built team, while Halo Studios retains a small staff to support existing games. Activision president Rob Kostich said the goal is to make the "greatest Halo game ever."
  • Xbox is consolidating operations to "strengthen our franchises and games by operating fewer business units, aligning groups that already work closely together," per Booty; Activision will oversee World's Edge and Rare, while Playground and Turn 10 merge to focus on Forza and Fable.
  • Following failed divestiture agreements, Ninja Theory is entering consultation alongside Arkane, with both studios expected to complete the process through year-end. Xbox plans an ALL-XBOX town hall on October 6 to reflect on progress and discuss upcoming game lineups.
Insights by Ground AI

133 Articles

Le Journal de MontrealLe Journal de Montreal
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Le Journal de QuebecLe Journal de Quebec
Right

Halo is in the hands of the Activision studio.

·Montreal, Canada
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Lean Left

Layoffs in the gaming industry are a major concern, even for Microsoft, a company with a huge scale.

·Istanbul, Türkiye
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  • 47% of the sources lean Left
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hobbyconsolas.com broke the news on Monday, September 21, 2026.
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