Microsoft lays off 268 Xbox staffers across Halo and other studios, as part of an ongoing gaming “reset”; Activision will take over Halo and two other games
Deals to sell off Ninja Theory fell through over the summer. … Microsoft is laying off around 260 Xbox employees today …
The Verge Tom Warren
Context & Ripple Effects
Xbox's reset follows the 2024 reduction of roughly 1,900 Microsoft Gaming roles and a further 650 gaming-job cut later that year. In July, Microsoft outlined a larger plan to reduce Xbox staffing and divest studios, including Ninja Theory; the attempted Ninja Theory sales have failed.
The transfer of Halo and two other games to Activision turns the reset from a headcount program into a production reorganization, concentrating responsibility for key Xbox properties inside a different Microsoft gaming unit.
First-order effects
- The 268 affected Xbox employees lose their roles, while Activision takes operating responsibility for Halo and two additional games.
- Ninja Theory remains inside Microsoft's gaming organization after its proposed sale transactions failed, leaving its future tied to the broader reset.
Second-order effects
- Activision must absorb staffing, development planning, and franchise accountability for Halo alongside its existing portfolio, while Halo's former studio structure loses control of the series.
- Microsoft can reduce overlapping studio-management layers by moving game teams and projects under larger operating groups rather than maintaining separate franchise organizations.
Third-order effects
- If Microsoft continues consolidating studios around major properties, Xbox's internal model shifts from independently managed teams toward portfolio groups built around reusable franchises.
- The pattern makes ownership of recognizable IP a more important determinant of studio structure, a concern also raised by public commentary framing the reorganization around franchises.
The trend: Microsoft's gaming reset is evolving from recurring workforce cuts into a franchise-led consolidation of development responsibility.
Related: Capacity-Allocation Cycle · Exclusive-content opportunity cost · Activision · Halo · Microsoft's planned Xbox cuts and studio divestitures · Xbox
Related Coverage
- Microsoft makes big cuts at Halo Studios, shifts franchise to Activision [Update] Game File · Stephen Totilo
- CONFIRMED: Microsoft Hands Halo to Call of Duty Developer Activision as Part of Seismic Xbox Studios Shakeup IGN · Wesley Yin-Poole
- Call of Duty's Activision to make next Halo game as Xbox cuts more jobs BBC · Laura Cress
- Xbox Cuts 268 More Roles As Reset Deepens, Folding Obsidian Into Bethesda And Rare Into Activision Wccftech · Francesco De Meo
- Xbox confirms 268 more layoffs, further studio closures, and Obsidian's shift to Bethesda as major restructuring continues Eurogamer.net · Matt Wales
- Xbox Announces More Job Cuts and Studio Reorgs, With Next Halo Game Developed by Activision Thurrott · Laurent Giret
- Xbox Cuts Jobs, Moves Game Studios Under Activision Bloomberg
- Hellblade developer Ninja Theory heading towards closure in new wave of Xbox cuts, as two separate agreements collapse Eurogamer.net · Connor Makar
- Xbox transfers Rare and Halo franchise to Activision, proposes closure of Ninja Theory, and confirms another 268 roles cut amid studio restructure GamesIndustry.biz · Jon Hicks
- Activision Taking Over Halo Franchise And What Remains Of Halo Studios Will Now Be A Support Team Kotaku · Zack Zwiezen
- Xbox Is Reorganising Its Studios and Making Further Layoffs GamesMarket · Marcel Kleffmann
- Xbox's consolidation plans might mean you get a new Halo sooner, but history shows production line development makes for boring games Rock, Paper, Shotgun · Julian Benson
- Xbox to cut 268 jobs as it shakes up studio structure PocketGamer.biz · Craig Chapple
- Microsoft reorganizes Xbox, hands Halo to Activision Neowin · Pulasthi Ariyasinghe
- Xbox Says Activision Will Now Make ‘Halo’ After Halo Studios Layoffs Forbes · Paul Tassi
- Activision Takes Control of Halo Following Mass Reorganization at Xbox Comic Book · Logan Moore
- Xbox Announces Next Wave Of Layoffs, Puts Obsidian Under Bethesda, Rare Under Activision TheGamer · Rhiannon Bevan
- Xbox Lays Off 268 More People, Hands Halo Series To Activision Game Informer · Charles Harte
- Halo Officially Falls Under New Leadership ScreenRant · Nicholas Becher
- It's the end of an era for Halo and Fallout as Xbox reshapes studios Polygon.com · Patricia Hernandez
- Ninja Theory Seems Set to Close After Two Potential Deals Fall Through DayOne · Kat Morton
- Obsidian is now under Bethesda as a part of Microsoft's new round of Xbox restructuring and layoffs RPG Site · Mikhail Madnani
- Xbox Confirms Job Losses and Studio Changes, Activision to Make Next Halo Game Push Square · Liam Croft
- Halo to Activision. Xbox merges studios and cuts 268 jobs The Game Business · Christopher Dring
- Xbox officially announces more layoffs and widespread changes to its entire studio structure Video Games Chronicle · Chris Scullion
- Xbox Lays Off More Workers, Combines Studios Aftermath · Riley MacLeod
- More Xbox Layoffs Hit as Massive Reorg Continues; Activision to Make Next ‘Halo’ Game The Hollywood Reporter · Tony Maglio
- Xbox Lay Offs Continue With 268 Employees Cut; Activision to Develop Next ‘Halo’ Game as Part of Studio Reorg Variety · Jennifer Maas
- Microsoft's Xbox cuts 268 roles as Activision takes over ‘Halo’ Seeking Alpha · Soumendra Mukherjee
- Official: XBOX to lay off 268 employees, and Ninja Theory faces potential closure Game World Observer
- Microsoft cuts hundreds more jobs, shifts next ‘Halo’ game to Activision in Xbox overhaul GeekWire · Todd Bishop
- Xbox faces another round of layoffs with 268 roles across Halo Studios and others GamesBeat · Sam Smith
- Halo Moves To Activision Amid Latest Round Of Xbox Job Cuts Empire · Jordan King
- Xbox confirms Halo moving to Activision devs amid another round of layoffs Dexerto · Joe Pring
- Xbox Lays Off Another 268 Employees, Assigns Activision to Next ‘Halo’ Game The Wrap · Alex Welch
- Xbox Continues “Reset” With Additional Layoffs And Restructuring Deadline · Dade Hayes
- REPORT Activision Takes Over Halo, Sea of Thieves, Age of Empires as More Huge Layoffs Hit Xbox Studios Digital Foundry · William Judd
- Banjo-Kazooie Developer Rare Is Now Reporting Directly To Activision Nintendo Life · Ollie Reynolds
- Xbox Will Shutter Hellblade Studio As It Couldn't Find Any Buyers For It Tech4Gamers · Abdullah Waseem
- Xbox lays off 268 more employees, merges Obsidian into Bethesda, and puts Activision in charge of Halo PC Gamer · Lincoln Carpenter
- King seemingly escapes major layoffs in latest round of Xbox cuts Mobilegamer.biz · Neil Long
- Halo Studios Eliminates 268 Roles, Activision Working on Next Halo Amid Xbox's Reorganization GamingBolt · Ravi Sinha
- Xbox has become a shell of its former self, weighed down by job cuts and studio closures, as it focuses on franchises like Halo and reaching “a billion people” The Verge · Andrew Webster
- Shuffling the deck chairs: Xbox continues its “reset” with dramatic restructuring Ars Technica · Kyle Orland
- Microsoft guts Halo Studios as Activision takes over making the next Halo game XDA Developers · Simon Batt
- Microsoft Tasks Activision to Build Next Halo Game as Xbox Layoffs Continue PCMag · Michael Kan
- “I'm still blown away by the amount of talent”: Hellblade devs Ninja Theory face closure after Microsoft fail to reach a deal with buyers Rock, Paper, Shotgun · Edwin Evans-Thirlwell
- ‘Our Goal is Clear - Make the Greatest Halo Game Ever’ Say Activision President DayOne
- Xbox lays off more than 250 employees amid studio restructurings Mashable · Alex Perry
- Microsoft Closing Hellblade Dev Ninja Theory After Failed Buyout Talks Push Square · Liam Croft
- Xbox Is Eliminating 268 More Jobs. The Cuts Will Affect 3 of Its Biggest Franchises Inc · Victoria Salves
- Xbox layoffs and reorganization continue, with 268 people cut across Halo Studios and first-person developers Rogue · Austin Douglas Ford
- Microsoft has been unable to find a buyer for Ninja Theory, studio to close KitGuru · Matthew Wilson
- Activision Sets Ambitious Goal of Making The Greatest Halo Game To Date Tech4Gamers · Avinash Jaisrani
- XBOX Continues its Restructuring Efforts with More than 260 Layoffs and Major Studio Shakeup Phandroid · Mike Viray
- Microsoft Signals Intention to Close Down Ninja Theory After Deals to Save the Hellblade Developer Fall Through IGN · Wesley Yin-Poole
- Microsoft may close Ninja Theory, Activision takes over Halo development VideoCardz.com
- Xbox keeps cutting with 268 more layoffs, hands Halo to Activision MobileSyrup · Jonathan Lamont
- Xbox Reset Brings 268 More Job Cuts and Major Studio Restructuring WinCentral · Nayan
- Headlines | Xbox Announces More Layoffs and Studio Changes, Halo Now With Activision DayOne
- Microsoft Cuts 268 Xbox Jobs, Hands Over Halo to Activision iPhone in Canada · Usman Qureshi
- Rumour: Next Halo Game Will Be a New ‘Mainline Instalment’, Casting Doubt on More Remakes Push Square · Robert Ramsey
- Xbox restructure will move Halo to Activision KitGuru · Matthew Wilson
- Activision's Goal is to “Make the Greatest Halo Game Ever,” Says President GamingBolt · Ravi Sinha
- Activision wants to make the best Halo ever, as Xbox reset eliminates core Halo Studios Notebookcheck · Vineet Washington
- Xbox is turning its back on Xbox Game Studios Polygon.com · Oli Welsh
- Xbox Restructuring Guts Age of Empires Custodian World's Edge, Cutting Half the Team as Activision Takes Over Wccftech · Alessio Palumbo
- Studio Behind PS3, PS4 Games on the Verge of Closure PlayStation LifeStyle · Anuraag Chatterjee
- Activision is taking over Halo as part of a massive Xbox shake-up The Verge · Tom Warren
- Senua might be a casualty of Xbox's reset as layoffs continue GamesBeat · Rachel Kaser
- Halo Studios Cinematic Director Promoted and Laid Off Within the Same Week as Xbox's Brutal Restructuring Continues IGN · Virginia Glaze
- Halo's Future With Activision Isn't Guaranteed to Please Longtime Fans of the Series Comic Book · Matthew Danielson
- Xbox is merging its Forza developers into a single studio The Verge · Tom Warren
- Halo's future moves to Activision while Obsidian folds into Bethesda Windows Central · Jez Corden
- Xbox lays off 268 more people as Activision takes over Halo and Bethesda absorbs Obsidian TechSpot · Daniel Sims
- Microsoft cuts another 500 jobs, majority from Xbox gaming division: Here is what happened Digit · Bhaskar Sharma
- Activision Will Now Handle Halo As Xbox Announces A Host Of Studio Changes And Cuts Press Start · Shannon Grixti
Discussion
-
XBOX Wire
Matt Booty
on x
Continuing Our Reset — This message was just sent to Team XBOX employees globally. — Team,
-
Pure Xbox
Craig Reid
on x
Xbox Confirms Activision Will Develop The Next Halo Title
-
Gameranx
Ryan Parreno
on x
Rumor: XBOX Moving Halo IP To Activision As Part of Upcoming Restructuring
-
@carlivelocci.com
Carli Velocci
on bluesky
If anything, this new structure just highlights how much Microsoft is relying on IP. Everything is under the umbrella of one IP, with multiple studios focused on it. It's the CoD model — news.xbox.com/en-us/2026/0...
-
@stevekovach
Steve Kovach
on bluesky
It's amazing how much effort Microsoft put into the Activision deal, its biggest acquisition ever, only to have buyer's remorse a few years later [embedded post]
-
@tomwarren.co.uk
Tom Warren
on bluesky
Microsoft is laying off 268 Xbox staffers and Ninja Theory may close. Two deals to sell Ninja Theory fell through over the summer. Details 👇 www.theverge.com/news/998589/ ...
-
r/xbox
r
on reddit
Continuing Our Reset
-
r/hellblade
r
on reddit
Very, very bad news from XBOX and Ninja Theory: The studio may be closing after buyout agreements failed.
-
r/gaming
r
on reddit
[XBOX] We are eliminating 268 roles across Halo Studios, other first-party studios, and the XBOX Game Studios management. …
-
r/giantbomb
r
on reddit
Continuing Our Reset - ‘First, we are eliminating 268 roles across Halo Studios, other first-party studios, and the XGS management and central functions layer.’
-
r/videogames
r
on reddit
Continuing Our Reset (Xbox)
-
r/Games
r
on reddit
Xbox Wire: Continuing Our Reset
-
r/xbox
r
on reddit
Continuing Our Reset
-
Pure Xbox
Fraser Gilbert
on x
Activision Issues Statement After Taking On Some Of The Biggest IP In Xbox History
-
Pure Xbox
Fraser Gilbert
on x
Xbox Warns That Ninja Theory Could Be Closed As Two Agreements Fall Through
-
@nib95_
@nib95_
on x
Just 4 days after Gears of War E-Day's story director celebrated the game going gold, he's been laid off by #Xbox. While the cinematic director at Halo Studios was promoted yesterday, only to be fired today. Harsh is an understatement.
-
@stephentotilo
Stephen Totilo
on x
Xbox Game Studios started 2026 with 12 studios plus publishing MS has since divested XGS studios or shifted them to Activision/Bethesda. Halo Studios shipped a game in July; fate announced today 3 lead XGS studios remain: Coalition, Playground, InXile, all shipping fairly soon
-
@qwik
Mike Ybarra
on x
If you are a Halo fan, this is the best news in a decade plus. 💪 Rob Kostich, Dave Stohl, Pat Kelly and team at Activision are rock star, old school game developers. Non-political, no bullshit - just flat out Halo at its best. They are not afraid to take risks and deliver a Halo …
-
@klobrille
@klobrille
on x
Activision CEO Rob Kostich: “For Halo, our goal is clear: make the greatest Halo game ever, worthy of its universe and legacy, while staying true to what made players love it in the first place. We have already begun assembling a purpose-built team.”
-
@daniel_rubino
Daniel Rubino
on x
More big changes at Xbox today, with a bunch of studio shifts, including Halo going to Activision. The good news, if any, is that the number of people laid off will fall *below* the estimated 3,200 given in July. For bad news, Microsoft is still trying to find a buyer for Ninja T…
-
@jezcorden
Jez
on x
BREAKING: I guess that July rumor I had about Halo going under Activision wasn't so crazy after all. Activision is building a new team to build Halo games, Obsidian is going under Bethesda, and Ninja Theory acquisitions fell through. FROM XBOX: https://www.windowscentral.com/ ...…
-
@rocketslothluke
Luke
on x
> be 343 > founded in 2007 to replace Bungie > ships 3 mainline Halo games, the best one is just alright > ships MCC broken, takes years to fix it > rebrands to Halo Studios to dodge the negative PR > puts out a remake that's half the game > Halo gets taken away > 19 years w...
-
@andy_vgc
Andy Robinson
on x
Xbox has officially announced widespread changes to its studio structure, including the merging of numerous studios, the handing over of Halo and Rare to Activision, and the potential closure of Ninja Theory. https://www.videogameschronicle.com/ ...
-
@ballmatthew
Matthew Ball
on x
As part of our ongoing reset, Matt Booty just sent an email to our team covering role reductions, a reorganization of several of our studios, and updates on our divestitures. See full email here: https://news.xbox.com/...
-
@mr_rebs_
@mr_rebs_
on x
Halo Studios cinematic director Josh Daniels was promoted yesterday and laid off today. Many people with lead roles at Halo Studios seem to have been hit with layoffs as Xbox begins turning the studio into a community support team. #Halo #Xbox
-
@manabyte
Jeremy
on x
Bethesda and Obsidian together and Playground and Turn 10 together just make sense.
-
@sean_endicott_
Sean Endicott
on x
@bdsams Maybe I've just grown cynical after covering Microsoft for over a decade, but stuff like today's news just makes me wonder what Phil Spencer was doing.
-
@tomwarren
Tom Warren
on x
Microsoft is laying off 268 Xbox staffers and Ninja Theory may close. Two deals to sell Ninja Theory fell through over the summer. Details 👇 https://www.theverge.com/...
-
@mr_rebs_
@mr_rebs_
on x
The Hollywood Reporter says the next Halo game, which is being developed by Activision, will be a full feature, mainline installment into the franchise! #Halo #Xbox
-
@dmc_ryan
Ryan McCaffrey
on x
Well, @asha_shar is not afraid to shake things up, that much is clear! Halo Studios is now no longer making the next big Halo game. What a wild sentence! So, can Activision save Halo? I wrote about it on IGN this morning: https://www.ign.com/...
-
@charlieintel
@charlieintel
on x
Activision will now consist of: - Call of Duty - Halo - World's Edge / Age of Empire - Rare / Sea of Thieves - Crash Bandicoot / Spyro / Tony Hawk Pro's Skater - New IP / Elsewhere Entertainment
-
@stealth40k
@stealth40k
on x
Xbox Studio shakeup: - 268 roles are being terminated - Halo is now under Activision - Halo Studios is moving to a support studio role - Rare is now under Activision - Obsidian is now under Bethesda - Playground and Turn 10 are mering into one studio to work on Forza and Fable - …
-
@bdsams
Brad Sams
on x
The next phase in rebooting Xbox has landed
-
@shinobi602
@shinobi602
on x
Update on Xbox's “Reset
-
@bdsams
Brad Sams
on x
Activision taking over Halo lead and with the game going Unreal Engine, this will be interesting to watch.
-
@phaseknight_
@phaseknight_
on x
Hundreds more layoffs so that's brutal!!!! Beyond that, I'm....curious about obsidian moving under Bethesda. I unfortunately don't know enough about the industry to have any real thoughts about that
-
@chris_dring
Christopher Dring
on x
In 2002, Rare went to Nintendo and asked it if it wanted to buy the remaining 51% of the studio (Nintendo owned 49%). Nintendo said no, triggering a bidding war for the developer. One of the bidding companies was Xbox. The other? Activision
-
@chris_dring
Christopher Dring
on x
Xbox is merging studios underneath Activision and Bethesda. Halo is now at Activision, alongside Rare and World's Edge. 268 job cuts across Halo Studios, other first-party teams and Xbox Game Studios team. Ninja Theory faces closure. More here: https://www.thegamebusiness.com/ ..…
-
@tomwarren
Tom Warren
on x
BREAKING: Activision is taking over Halo as part of a massive Xbox shake-up and more layoffs. Sea of Thieves developers Rare are moving to Activision, alongside World's Edge, the studio behind the Age of Empires franchise. Full details 👇 https://www.theverge.com/...
-
@tomwarren
Tom Warren
on x
Xbox is merging its Forza developers into a single studio. Playground Games and Turn 10 Studios staff will now focus on Forza Horizon and Fable together. Details 👇 https://www.theverge.com/...
-
@wario64
@wario64
on x
Xbox - “Continuing Our Reset
-
Josh Daniels
Josh Daniels
on linkedin
Promoted and laid off in the same week is pretty wild. — I'm one of the many hit by the Halo Studios layoffs. …
-
r/CompetitiveHalo
r
on reddit
Activision is taking over Halo as part of a massive Xbox shake-up
-
r/playstation
r
on reddit
Activision is taking over Halo as part of a massive Xbox shake-up
-
r/pcgaming
r
on reddit
Activision is taking over Halo as part of a massive Xbox shake-up
-
r/MediaMergers
r
on reddit
Activision is taking over Halo as part of a massive Xbox shake-up | The Xbox reset continues with major studio changes, layoffs, and more.
-
@septic_sauce
Gaz
on x
The new Halo will hit different
-
@seanhollister
Sean Hollister
on bluesky
Activision is taking over Halo. — Feels like we're witnessing the end of Xbox Game Studios. www.theverge.com/news/998586/ ...