Xbox is implementing another phase of its restructuring plan, with 268 roles being eliminated across Halo Studios, other first-party studios and Xbox Game Studios management and central functions.
The update was shared by Matt Booty in a September 22 message to Xbox employees globally.
According to Booty, the latest actions bring Xbox roughly three-quarters of the way through its previously announced restructuring, including studio divestitures completed since July.
Booty acknowledged the impact on employees leaving the company and the teams affected by the changes.
Xbox is also consolidating parts of its studio structure, with the stated goal of operating fewer business units and bringing groups that already work closely together under broader organizations.
Activision will expand its remit to include World’s Edge and Rare. It will also develop the next Halo title through a new purpose-built team separate from ongoing development and plans for Call of Duty.
A smaller Halo Studios team will continue supporting the existing Halo community and games.
Bethesda will expand its remit to include Obsidian. Obsidian will continue its current projects, including Grounded, as well as a new Fallout project being developed in collaboration with Bethesda Game Studios.
King will take responsibility for Microsoft Casual Games, bringing together two major organizations focused on casual gaming and live operations.
Playground Games and Turn 10 will become one studio focused on the Forza and Fable franchises. The two teams have worked as creative and franchise partners for more than a decade.
Xbox also provided updates on several studio divestitures.
Compulsion Games and Double Fine returned to management in August with their intellectual property, back catalogs and runway funding. Undead Labs has completed a similar transition and will release State of Decay 3 day one on Game Pass with a new publisher.
Meanwhile, two separate agreements involving Ninja Theory fell through. Xbox said it will begin employee consultation on a proposed closure while continuing to explore other options.
Consultation involving Arkane remains ongoing and is expected to continue through the end of 2026.
