Xbox layoffs and reorganization continue, with 268 people cut across Halo Studios and first-person developers
Xbox has reduced Halo studios and other teams down to virtually nothing as it seeks to close Ninja Theory and develop the next Halo game with Activision
Following the announcement of 3,200 layoffs earlier this year, Xbox has posted a new blog post containing a company-wide email titled 'Continuing Our Reset' this morning. The post reveals a further 268 people working across Halo Studios, Xbox first-party studios, and the "XGS management and central functions layer" have been laid off.
In tandem with the layoffs, Xbox is also reorganizing its teams, refocusing on the company's biggest first-party titles. This comes in the form of four major shake-ups across the Xbox Game Studios division.
First, Activision will "expand its remit" to World's Edge and Rare. The studio will also be developing the next Halo game with a "purpose-built team that is separate from ongoing development and plans for Call of Duty." The few folks left at Halo Studios will continue to support the Halo titles that are currently available.
Obsidian Entertainment will now operate fully under Bethesda. The studio will continue with its current games, including Grounded 2 and their new Fallout project.
King will absorb Microsoft Casual Games, "uniting our two global leaders in casual game design and live operations." MCG is responsible for some of the classic PC games throughout Windows' history, including Minesweeper, Solitaire, and more.
Finally, Playground Games and Turn 10 will take their decade of partnership to the next level and combine into one mega-studio, focusing on the Forza and Fable franchises.
Unfortunately, despite trying to find an agreement for Xbox to divest Ninja Theory, the companies have been unsuccessful. Xbox says that they are now going to be moving forward with a consultation process with the employees of Ninja Theory on a proposed closure of the studio. They added that during this process—the same one that Arkane has been in since June—Xbox and the Ninja Theory team will "continue to explore other paths forward."
Microsoft laid off 1600 employees in July, and announced another 1600 cuts would occur over the coming year. Today's layoffs are part of that continuing effort, and there are more to come. Matt Booty concluded the memo by saying "our focus should be on supporting those affected and treating one another with care and respect" and announcing an October 6 town hall for Xbox employees to "reflect on our progress."
