Microsoft lays off more employees from its video game division
- On Tuesday, Microsoft announced 268 job cuts across its Xbox business as part of its ongoing 'reset.' Playground Games and Turn 10 will merge into a single studio, while Obsidian moves under Bethesda's control and Halo development shifts to Activision.
- These reductions follow earlier plans to cut approximately 3,200 positions by June 30, 2027. Microsoft CEO Satya Nadella praised the 'streamlining,' calling it 'great to see' as the company pursues sustainable growth.
- Halo Studios, formerly 343 Industries, faces cuts alongside other first-party teams. Undead Labs, Double Fine, and Compulsion Games have been divested and are now independent as part of the restructuring.
- Cinematic director Josh Daniels was among those affected, stating on LinkedIn, 'Promoted and laid off in the same week is pretty wild.' Staff will discuss the restructuring at an Xbox town hall on October 6.
- Xbox aims to build a 'sustainable business model' delivering games across PC and Xbox platforms. The company plans to leverage its intellectual property portfolio to return to growth in the next fiscal year.
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