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Microsoft guts Xbox Game Studios, leaving only three teams standing

Halo Studios downsized and folded into Activision as Microsoft's first-party portfolio shrinks from 14 teams to three.

What to know

  • Xbox Game Studios has shrunk from about 14 teams to just three: Playground Games, InXile Entertainment, and The Coalition.
  • 343 Industries (Halo Studios) is being severely downsized and its remaining staff will function as a support team for Activision.
  • Rare and World's Edge move under Activision, Obsidian under Bethesda, Turn 10 is absorbed by Playground Games, and Undead Labs is sold back to management.
  • Ninja Theory has not found a buyer and remains at risk of closure; Microsoft says restructuring is roughly three-quarters complete.

Matt Booty Xbox chief content officerPhil Spencer Former architect of the Xbox first-party portfolioAsha SharmaAsha Sharma Xbox CEONinja Theory Xbox-owned studio without a buyerMicrosoft Parent company / Xbox owner

Microsoft guts Xbox Game Studios, leaving only three teams standing
kotaku.com

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

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  1. 1

    Booty announces Halo Studios downsizing and studio reassignments

    Matt Booty announced 343 Industries (Halo Studios) will be severely downsized into an Activision support team; Rare and World's Edge move under Activision, Obsidian under Bethesda, Turn 10 is absorbed into Playground Games, Undead Labs is sold back to management alongside Double Fine and Compulsion, and Microsoft Casual Games is handed to King. Ninja Theory remains without a buyer and at risk of closure.

    “The actions completed since July, inclusive of the studio divestitures, bring us roughly three-quarters of the way through previously announced restructuring.”
    — Matt Booty
  2. background

    Halo: Campaign Evolved ships ahead of Halo Studios shake-up — Microsoft released Halo: Campaign Evolved before announcing changes to Halo Studios, suggesting it timed the restructuring around game launches.

  3. background

    Microsoft sells Double Fine, Compulsion back to management, spins off Mojang — Double Fine and Compulsion Games were sold back to studio management, and Mojang was removed from the Xbox Game Studios umbrella to report directly to Xbox CEO Asha Sharma, marking an acceleration of the breakup.

  4. background

    Microsoft shuts down The Initiative — After years of struggling development on the new Perfect Dark, Microsoft announced it was closing the studio.

  5. background

    The Initiative teases a new Perfect Dark at Game Awards — The Initiative was pitched as a new AAA Xbox team to make GOTY contenders, unveiling a Perfect Dark reboot teaser.