Xbox Confirms Job Losses and Studio Changes, Activision to Make Next Halo Game
Covered by 2 sources · 2 articles
Microsoft has confirmed a major restructuring of its Xbox division, including workforce reductions affecting multiple studios, among them Halo Studios. The changes also involve organizational shifts, with Obsidian Entertainment moving under Bethesda's leadership. Most notably, Microsoft has handed off future Halo development to Activision, marking a significant departure from internal stewardship of the franchise. Xbox leadership communicated these moves through an official message to staff addressing what the company framed as a strategic reset.
- Microsoft laid off workers across Xbox, including at Halo Studios, while reshuffling studio affiliations.
- Activision will develop the next Halo game, removing the project from Microsoft's in-house teams.
- Organizational changes include Obsidian Entertainment's transition to Bethesda's management structure.
Halo's shift to an external developer signals Microsoft's willingness to restructure even its most iconic franchises amid broader gaming industry consolidation and cost pressures.
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