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Xbox shifts Halo to Activision, lays off 268 in studio overhaul

Microsoft consolidates first-party studios and hands flagship franchises to outside developers in continued restructuring.

newest coverage 1d agosummary written 1d ago2 pieces Newswires

What to know

  • Xbox is laying off 268 additional employees and restructuring four major franchises (Halo, Fallout, Forza, Fable) five months after a 1,600-person cut.
  • Halo development outsources to Activision while Obsidian's Fallout project moves under Bethesda management; Playground and Turn 10 studios merge.
  • The moves formalize existing inter-studio partnerships and signal Xbox's shift toward external partnerships and consolidated internal operations.

“343 hasn't exactly been killing it with the IP. Sledgehammer and Treyarch can deliver when they're allowed to cook, and not forced to release yearly titles. Might be a good move in the end.”

Polygon comment (anonymous), Reader response · Polygon comments ↗ · Sep 21

Matt Booty Xbox chief content officerJosh Sawyer Lead director, Fallout franchiseXbox PublisherActivision External developer partnerBethesda Internal studio division

Xbox shifts Halo to Activision, lays off 268 in studio overhaul
Polygon

How it unfolded 1 development · click the chart to see its coverage articles

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  1. 1

    Ninja Theory separation finalized without agreement

    Xbox announced it could not work out an arrangement to retain Devil May Cry studio Ninja Theory, following earlier summer divestitures of Compulsion Games, Undead Labs, and Double Fine. Arkane remains in negotiations.

    “The next Halo title will be developed by Activision. The game will be produced by a new team, but a smaller group of employees at Halo Studios will continue to offer support.”
    — Matt Booty, Xbox chief content officer · source
    1. 1 outlet It's The End of An Era For 'Halo' and 'Fallout' As Xbox Reshapes Studios

      first by Polygon, 1d ago

  2. background

    Playground and Turn 10 merge into single Forza and Fable studio — The two studios will combine into one entity focusing on both Forza and Fable franchises. King will expand to include Microsoft Casual Games.

  3. background

    Obsidian moves under Bethesda management — Obsidian, known for Fallout: New Vegas, now operates under Bethesda. The studio's current projects, including the next Fallout game headed by Josh Sawyer, will continue as planned.

  4. background

    Halo development transferred to Activision — The next Halo title will be developed by Activision with a new team, while a smaller support group remains at Halo Studios. Activision will continue managing Call of Duty as well.

  5. background

    Xbox announces 268 layoffs and major studio reorganization — Matt Booty announced the cuts affecting various Xbox departments and reorganization of first-party studios including Obsidian, Playground, and Turn 10, impacting four major franchises: Halo, Fallout, Forza, and Fable.