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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.

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

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.

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.

Xbox to publish Kojima Productions' Physint after PlayStation cancelled the project

Kojima Productions unexpectedly received notice from PlayStation Studios in mid-June that it would cancel the Physint project, and the studio has now partnered with Xbox to publish the game. Hideo Kojima said the team was determined to keep the project alive and found in Xbox a partner sharing a common vision, with the two also set to collaborate on storytelling across games, film, and television. PlayStation called it a difficult decision and said its relationship with Kojima Productions remains strong after three decades of cooperation.