#Studio

Age of Empires developer World's Edge hit with layoffs after move to Activision

Age of Empires studio World's Edge has been hit with layoffs after its transition to Activision, with former creative director Adam Isgreen saying he and just under half the team were cut. Isgreen, a 16-year Microsoft veteran, said he was disappointed that his time with World's Edge and Age ends this way. World's Edge was among several studios affected by Xbox's restructuring, which moved it, Rare and Halo to Activision and eliminated 268 positions, while Ninja Theory is set to close and Undead Labs became independent.

Former Halo leaders respond to effective closure of Halo Studios as Xbox cuts 268 jobs

Microsoft's Xbox division cut 268 jobs across Halo Studios, other unnamed first-party studios and Xbox Game Studios management, leaving Halo Studios as a small support team while major Halo development moves to a purpose-built team at Activision. Former Halo heads Bonnie Ross and Kiki Wolfkill said on LinkedIn that Halo Studios is essentially being shut down, and one former employee said he was promoted and laid off in the same week. The changes also include the apparent closure of Ninja Theory, Obsidian moving under Bethesda, Playground and Turn 10 merging, Undead Labs going independent, and Rare, World's Edge and Halo moving under Activision.

Age of Empires studio World's Edge reportedly lost nearly half its staff in Xbox cuts and moved to Activision

Former creative director Adam Isgreen said on the Resetera forums that Age of Empires studio World's Edge lost just under half its staff in yesterday's Xbox restructuring, himself included. The restructuring moved World's Edge under Activision's control, and the initial announcement did not say whether the studio would lose staff. Isgreen, who spent over 16 years at Microsoft on projects including Ori, Minecraft and State of Decay, said he was disappointed by how his time with World's Edge and Age of Empires ended.

Undead Labs lays off staff after splitting from Xbox, will find a new publisher for State of Decay 3

Undead Labs has become an independent, employee-owned studio after divesting from Xbox, and announced it is laying off a significant number of employees, some of whom worked on State of Decay 3. The studio will now work with a new publisher to release State of Decay 3, which is still slated for a day one launch on Xbox Game Pass. Microsoft said the studio regained independence on terms similar to Double Fine and Compulsion, which split from Xbox earlier this year with their IP, back catalogs and runway funding.

State of Decay 3 studio Undead Labs lays off a significant number of staff after going independent from Xbox

Undead Labs, the studio behind State of Decay 3, has laid off a significant number of staff after announcing it is becoming an independent, employee-owned studio. In a LinkedIn post the studio said the departing developers had poured years into the State of Decay franchise and offered to connect them with other studios hiring. Microsoft had announced plans in July to split with five studios including Undead Labs, and Double Fine, Compulsion Games, Ninja Theory and Arkane have since faced layoffs, a pivot to co-development, possible closure or continued consultation.

Age of Empires studio World's Edge reportedly loses nearly half its staff and a new game project in Xbox layoffs

A verified creative director posted on ResetEra that World's Edge, the studio that manages the Age of Empires series, lost just under half its staff as it moved from Xbox's direct control to Activision. World's Edge creative director Adam Isgreen wrote on LinkedIn that he and many colleagues were among the 268 staff cut in Xbox's latest round, and senior software engineer Andrew Martz said "our next project" was shelved as a result of the Activision move. The 268 cuts are part of a months-long "reset" of Microsoft's games business led by new Xbox CEO Asha Sharma, after around 1,600 layoffs in July, with totals expected to reach an estimated 3,200.

Xbox lays off Gears of War: E-Day story director two weeks before launch

Gears of War: E-Day story director Juan Vaca announced on LinkedIn that he was part of Microsoft's latest round of layoffs, roughly two weeks before the game's 6th October release. He joined developer The Coalition in 2022 and had posted five days earlier celebrating the game going gold. Kotaku, citing an anonymous source, reported fewer than a handful of developers were cut at The Coalition for reasons apparently unrelated to Xbox restructuring, while 268 developers were laid off across Xbox overall.

State of Decay studio Undead Labs goes independent and worker-owned as it leaves Xbox, laying off a significant number of staff

State of Decay developer Undead Labs has left Microsoft to become an independent, worker-owned studio amid Xbox's latest round of cuts, but said on LinkedIn it is also laying off a significant number of colleagues. Microsoft said this summer it had found a buyer for the studio without naming them. State of Decay 3 is still in development, targeting a closed beta before the end of the year and a 2027 release, and remains a Game Pass title with a new unnamed publisher, coming to Xbox, PC and PlayStation.

Undead Labs confirms it is now an employee-owned studio, with a significant number of layoffs

Undead Labs announced it has completed its separation from Xbox and is now operating as an employee-owned game development studio, with a significant number of employees made redundant. The studio said development of State of Decay 3 remains actively underway, with a 2027 launch planned for Xbox, Game Pass, PC and PlayStation and a closed beta before the end of the year. The move came as Microsoft eliminated 268 positions across its first-party studios and shifted Rare and the Halo franchise to Activision.

Xbox Game Studios started 2026 with 12 studios plus publishing

Microsoft proposes closing Hellblade developer Ninja Theory after failing to reach a deal with buyers

Microsoft is proposing to close Hellblade developer Ninja Theory after failing to reach an agreement with buyers, and will begin consultation with employees on the proposed closure. Xbox chief creative officer Matt Booty said in a memo that two separate agreements for Ninja Theory fell through while the company continues to explore other paths forward. The move comes in a round of Microsoft cuts that saw Xbox lay off 268 people, with Undead Labs successfully sold to undisclosed buyers.

Microsoft hands Halo to Activision, demotes Halo Studios to a support team amid 268 layoffs

Microsoft has placed the Halo series under Activision, with a new purpose-built team separate from Call of Duty development making the next Halo game, while Halo Studios becomes a small team supporting existing Halo games. The company is laying off 268 people across Halo Studios, other first-party studios and the XGS management and central functions layer, and it is not yet clear who is affected. The move follows July's announcement of 1,600 job cuts, part of plans to reduce the workforce by 3,200 over the financial year.

Today's Xbox studio consolidation might bring a new Halo sooner, but history shows production line development makes for boring games

Xbox is consolidating its studios and moving the Halo series to Activision with 268 team members, aiming to push out its biggest franchises like Fallout and Halo more quickly. The article argues that chasing an annual Call of Duty-style release pace wears down individual studios' quirks and flattens innovation, as Ubisoft's years of annual Assassin's Creed releases showed before the publisher dropped the yearly cadence.

Xbox lays off 268 people as Activision takes over Halo and Rare, Obsidian joins Bethesda

Xbox is cutting 268 roles across Halo Studios, other first-party studios and the XGS management and central functions layer. Activision takes custody of the Halo series along with Age of Empires developer World's Edge and Sea of Thieves maker Rare, while Obsidian moves into Bethesda and Playground Games merges with Turn 10 Studios. Ninja Theory is consulting on a likely closure and Arkane's future is expected to be discussed through the end of the year.

Xbox Lays Off 268 More People, Hands Halo Series to Activision

Xbox announced it is cutting 268 roles across its first-party studios, XGS management, and central functions, with Halo Studios significantly affected. In an Xbox Wire post titled Continuing Our Reset, Xbox content chief Matt Booty said Activision will expand its remit to World's Edge and Rare and form a new internal team to develop the next Halo title, while a small team at Halo Studios continues supporting the community and in-market games. The post also details studio reshuffles including Bethesda absorbing Obsidian, King taking on Microsoft Casual Games, and Playground and Turn 10 merging, plus divestitures in which Compulsion and Double Fine spun off, Undead Labs signed with a new publisher, and Ninja Theory and Arkane face proposed closures.

Microsoft confirms 268 more Xbox layoffs, studio restructuring, and Obsidian moving under Bethesda

Microsoft confirmed a new Xbox restructuring round with 268 more layoffs affecting Halo Studios, other unnamed first-party studios, and Xbox Game Studios' management and central functions. Rare and World's Edge now fall under Activision, Playground and Turn 10 will combine on Forza and Fable, and Bethesda will oversee Obsidian, which continues work on Grounded and a new Fallout project with Bethesda Game Studios. The next Halo game will be developed by a new Activision team, while Ninja Theory faces proposed closure and Arkane consultation is expected to continue through the end of the year.

Added a statement from Activision's president regarding Halo, says they've "begun assembling" a team for the next Halo.

Xbox continues reset with Halo Studios layoffs and Undead Labs divestment

Xbox has laid off another 268 employees as part of the restructuring it began in July 2026, affecting Halo Studios, other first-party teams, and the Xbox Game Studios management and central functions layer; Matt Booty said the division is roughly three-quarters of the way through the previously announced restructuring. Undead Labs has transitioned out of Xbox on terms similar to Double Fine and will release State of Decay 3 day one on Game Pass with a new publisher, while Ninja Theory faces a proposed closure and Arkane remains in consultation. Xbox is also merging internal studios, moving Rare and World's Edge under Activision, placing Obsidian under Bethesda, adding Microsoft Casual Games to King, and combining Playground Games and Turn 10, with Activision developing the next Halo led by a new purpose-built team.

Hellblade developer Ninja Theory enters closure consultation in new wave of Xbox cuts

Xbox chief content officer Matt Booty announced on the Xbox Wire blog that Ninja Theory has entered employee consultation over a proposed closure after two separate agreements fell through. The studio was developing Senua, a new Hellblade entry announced at the June Xbox Games Showcase, and was put up for sale by Microsoft within a month of its reveal. Booty said he will spend the next week with Xbox studios and hold an all-Xbox town hall on October 6.

NEW: Nearly 300 more jobs cut at Microsoft's gaming team (part of 3,200 announced in July). Majority at Halo Studios, reduced to support

As part of the continuing reset of the business, XBOX will is eliminating 268 roles across Halo Studios, other first-party studios, and t...

Microsoft restructures Xbox: next mainline Halo moves to Activision as Halo Studios cuts 268 roles

Microsoft has handed the next mainline Halo game to Activision, which is forming a new purpose-built team separate from Call of Duty, while Halo Studios keeps only a small team supporting existing games and the community. Xbox Studios boss Matt Booty said 268 roles are being eliminated across Halo Studios, other first-party studios, and the XGS management and central functions layer. Activision president Rob Kostich said Halo, Rare, and World's Edge are joining Activision, as Ninja Theory closes and studios including Obsidian and Rare are consolidated under others.

Xbox transfers Rare and Halo to Activision, proposes closing Ninja Theory and cuts another 268 roles

Xbox is transferring Rare and ownership of the Halo franchise to Activision, proposing the closure of Ninja Theory with a staff consultation, and cutting 268 roles in the restructure. Activision will also take on World's Edge and build a new team for the next Halo, Bethesda will absorb Obsidian, Playground and Turn 10 will merge into one studio for Forza and Fable, and Undead Labs has left the business and will release State of Decay 3 day one on Game Pass with a new publisher. Xbox said it is roughly three-quarters of the way through a planned 3,200 job cuts this year.

A buyer for Ninja Theory has fallen through and Xbox will now close Ninja Theory.

Blizzard layoffs reported as imminent, while new Xbox cuts appear to spare Blizzard for now

Bloomberg reporter Jason Schreier said on the 8-4 podcast that Blizzard layoffs are coming and imminent. The latest wave of Xbox cuts involves 268 job losses, with Ninja Theory closed, Halo Studios downsized and Halo development handed to Activision, Obsidian folded into Bethesda, Playground and Turn 10 merged, and Rare moved under Activision, though Blizzard does not appear to be included for now. Microsoft said earlier this year it intended to cut 3,200 roles from the Xbox division, cutting 1,600 immediately and earmarking 1,600 more.

Secret Mode Bets on Two Pillars: Pure Indie and Higher-Budget Games

UK publisher Secret Mode, now independent from Sumo Digital, is targeting two pillars: pure indie titles and higher-budget games like Star Wars: Galactic Racer, due out on October 6. Chief publishing officer James Schall says the company has seen phenomenal growth over the past 18 months. Secret Mode has also taken on publishing and ongoing development for Escape the Backrooms and Chained Together, and opened its own internal studio in Sheffield.

Bungie says it is not done with Destiny, pledging to bring back vaulted Destiny 2 content while saying Marathon needs to evolve

Bungie's new leadership said in a blog post that Destiny is foundational to the studio's future and that previously vaulted Destiny 2 campaigns, destinations and raids will be added back into the game, while acknowledging it cannot change the decision it made. They also said Marathon did not reach as many players as hoped and needs to evolve, so seasonal updates are being dropped in favour of a resurgence starting with a December PvE update. The studio said it has simplified priorities, reduced competing initiatives and moved decisions closer to development teams.

Bungie says it is not done with Destiny, will restore archived Destiny 2 content to rebuild player trust

Three months after Destiny 2's final update, Bungie announced plans to restore previously vaulted campaigns, raids and destinations to rebuild player trust. Studio head Poria Torkan and Marathon general manager Josh Deane said in a blog post that Destiny is foundational to Bungie's future, acknowledging that ending Destiny 2 development led to 292 layoffs and lost trust. Deane said the restoration is not as simple as restoring old files, since changes made since Beyond Light require updates to lighting, encounters, combatants and other underlying systems. Bungie also updated its Marathon roadmap, saying the game did not reach as many players as hoped but was never intended to replace Destiny.

Xbox reportedly set to lay off hundreds more staff and consolidate several game studios this week

The Information reports that Microsoft-owned Xbox is set to cut hundreds more jobs this week and consolidate some of its game studios, including Xbox Game Studios, Bethesda, Activision and Blizzard. Bloomberg reporter Jason Schreier said on the September 18 episode of the 8-4 Play podcast that Blizzard cuts are imminent. In July, Xbox laid off around 1,600 people and parted ways with five studios, with CEO Asha Sharma saying the company would cut 3,200 roles over its next financial year.

Reported second wave of Xbox cuts said to hit this week, with several studios facing consolidation

The Information reported, citing a source briefed on Microsoft's plans, that Xbox is preparing to lay off hundreds more people this week and consolidate several of its studios, without naming which ones. If accurate, it would be the second wave of Xbox layoffs this year after July's restructuring cut 1,600 jobs, when Double Fine Productions and Compulsion Games bought back their independence, Ninja Theory and Undead Labs were sold to unnamed buyers, and Arkane Lyon entered consultation. The cuts are part of Xbox CEO Asha Sharma's plan to reset the gaming division and return it to profitability; she previously said a further 1,600 jobs would be cut within a year.

Xbox reportedly set to announce second round of layoffs this week

Xbox is reportedly preparing a second round of layoffs this week, with a source saying the company will consolidate several of its game studios, according to The Information. VGC reports this could involve mergers or internal changes at Xbox Game Studios, Bethesda, Activision and Blizzard. Xbox had announced plans to cut 3,200 employees in July, with the first round resulting in 1,600 redundancies and the divestment of five internal studios.

Bungie says it is 'not done with Destiny' as it lays out the studio's future

Bungie studio head Poria Torkan and Marathon general manager Josh Deane published a blog post saying Destiny is foundational to Bungie's future and that the studio will return to developing the series, starting by unvaulting years of archived Destiny 2 content. In an accompanying video they acknowledged lost trust and lost colleagues, and said Marathon did not reach as many players as hoped and needs to evolve. Bungie had previously said active development on Destiny 2 would end in June 2026 and laid off almost 300 employees.

French publisher Dear Villagers confirms layoffs of around 15 staff

French publisher Dear Villagers has laid off around 15 employees, down from a workforce of roughly 20 before the cuts. The company said the downsizing follows a reorganization of operations by its owner Plug In Digital, and that it intends to keep publishing and producing games. A spokesperson said the workforce reduction plan affects approximately fifteen positions and that final figures are not yet available, while impacted employees said on LinkedIn that the vast majority of the team, including almost all of QA, was laid off.

Hideo Kojima recounts Physint's move from PlayStation to Xbox as his studio calls itself healthy and profitable

In an interview with IGN, Hideo Kojima said Sony told him in a June Zoom call that it would no longer fund development of Physint, after which he sought a new publisher and the project landed with Xbox. He said he is not in a dispute with Sony and that work on Physint never stopped, though only a small team stayed on key parts while others moved to the Xbox-published horror game OD. Kojima Productions also issued a statement saying the Bloomberg report's claims about its PlayStation relationship, Death Stranding franchise sales, and Physint production planning came from no official or on-the-record source, and that the studio is in a healthy, profitable state.

Hideo Kojima says he "couldn't understand" why Sony put Physint on its cancellation list

Hideo Kojima told The Washington Post he could not understand why Sony put Physint on its list of cancelled projects, calling it the biggest-selling title he could possibly create. He said Kojima Productions received notice from PlayStation Studios in mid-June that funding would stop, then found Xbox as a new partner, with no layoffs and a small team continuing Physint while others moved to OD. Kojima said Physint's plot and game concept are complete, 3D models of its actors are underway, and the studio's relationship with Sony remains strong.

"They've watched so many people lose their jobs, that has an impact" – Managing morale in the wake of layoffs

After years of mass layoffs across the games industry, HR experts say the morale of remaining staff is being overlooked, with some employees having lived through two, three or more rounds of cuts. Emma Smith, formerly of Creative Assembly and now at Hestia Talent Partners, argues studios must rebuild trust through honesty and consistency before motivation can return, while Compulsion Games' Michael Elliott Chan advises regular communication and one-to-one conversations. Both also say career development need not mean promotion, and can include deepening skills or mentoring.

Saber Interactive exec says North American studios should get their heads out of their own geography

Saber Interactive chief creative officer Tim Willits said traditional legacy developers make a mistake by employing 200 people in places like Texas, California and New York before they have a vertical slice. He argued big studios should take work-for-hire, remasters and small side projects to keep reliable income, as Saber does alongside titles like Space Marine 2.

Dredge maker Black Salt Games establishes indie studio Team Trifold under new Saltworks Entertainment label

Dredge creator Black Salt Games has launched a new studio, Team Trifold, along with a white-label publisher called Saltworks Entertainment that will serve three New Zealand indie studios. Black Salt Games is funding the development and publishing of Team Trifold's debut game Nothing Lost, which aims to turn the roguelike loop on its head by using death as a core progression mechanic.

Publisher drops unannounced game, Heart Machine lays off "nearly everyone"

Heart Machine, the studio behind Hyper Light Drifter, has laid off nearly all of its staff after a publisher decided not to move forward with an unannounced title. Founder Alx Preston confirmed the cuts on LinkedIn, saying the studio still exists but is in a precarious position and that affected staff will receive placement support. The cancelled game would have been Heart Machine's fifth, following Hyper Light Breaker's halted development and a smaller round of layoffs, with Possessor(s) released weeks later.

Hyper Light Drifter maker Heart Machine lays off nearly everyone

Heart Machine studio head Alx Preston said on LinkedIn that an unannounced game funded by an unnamed publisher was dropped by that publisher this week, and without that income nearly everyone at the studio had to be laid off. Preston did not say the studio would shut down, only that he is not sure what is next for Heart Machine to survive. The studio debuted in 2016 with the Kickstarter-funded Hyper Light Drifter, followed by Solar Ash and the early access Hyper Light Breaker, whose development ended after layoffs in October 2025 without a 1.0 release; its latest game, the Metroidvania Possessor(s), sits at 71 on Metacritic and was preceded by a second round of layoffs in October 2025.