XBOX has eliminated 268 roles and announced another major reorganization of its first-party studios. The latest changes are part of the reset the company began in July. A new Activision team will develop the next Halo, Playground and Turn 10 are combining, and Ninja Theory faces consultation over a proposed closure.
XBOX chief content officer Matt Booty says the actions completed since July have brought the organization roughly three-quarters through its announced restructuring. The July plan called for approximately 3,200 role eliminations across FY27. Approximately 1,600 roles were eliminated in July.
XBOX Reorganizes Its Major First-Party Studios
Activision’s role inside XBOX is expanding to include Rare and World’s Edge. A new purpose-built Activision team will also develop the next Halo game, separate from ongoing Call of Duty development.
Halo Studios will remain, but with a smaller team supporting the Halo community and games already on the market.
Playground Games and Turn 10 are also combining into one studio focused on Forza and Fable. XBOX says the teams have worked together on Forza for more than a decade. The Verge reported that more than 70 Turn 10 employees were laid off last year, adding context to today’s consolidation.
Bethesda’s remit will expand to include Obsidian. The studio will continue working on Grounded and its new Fallout game with Bethesda Game Studios.
King, the studio behind Candy Crush, will also take on Microsoft Casual Games.
Undead Labs Leaves XBOX as Ninja Theory Faces Proposed Closure
The studio separation process has also moved forward since July. Compulsion Games and Double Fine returned to management in August with their IP, back catalogues, and runway funding. Undead Labs has now completed a similar transition.
State of Decay 3 remains in development with a new publisher and a day-one Game Pass release. The game is still scheduled for 2027 on XBOX Series X|S, PC, cloud, Game Pass, Steam, and PlayStation 5.
Ninja Theory’s situation is much less certain. XBOX says two separate agreements for the studio fell through. It is now beginning employee consultation over a proposed closure while other options continue to be explored.
Senua remains announced for 2027, despite the uncertainty around Ninja Theory. It is scheduled for XBOX Series X|S, PC, cloud, Game Pass, Steam, and PlayStation 5. XBOX has not provided a new status update for the game following the September 22 restructuring news.
Arkane Consultation Continues Ahead of October 6 Town Hall
Arkane’s future also remains unresolved. Arkane’s management began the required consultation process with its Works Council in July to review potential strategic options. Booty says that process is expected to continue through the end of 2026.
The next XBOX-wide update is scheduled for October 6. An all-team town hall will review the reset so far and discuss what comes next.
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