Xbox is making another 268 job cuts while reshaping the internal map for a large portion of its game studios. The company describes the latest reductions as part of its previously outlined “reset,” which executive vice president and chief content officer Matt Booty says is now about three quarters complete.

The immediate human cost comes first: roles are being eliminated across Halo Studios, other first-party teams, and Xbox’s management and central-functions layer. At the same time, Xbox is moving studios under Activision, Bethesda and King, merging some operations, and changing which teams will carry major series including Halo, Forza, Fable, Grounded and Fallout.

For players, the announcement contains several commitments and several important unknowns. State of Decay 3 is still intended to arrive on Game Pass at launch. Obsidian is continuing work on Grounded and its previously announced Fallout project. Existing Halo games and their communities will retain support. But the makeup of the studios making future games—and, in Ninja Theory’s case, its longer-term status—has changed or remains unresolved.

What Xbox says is changing

The headline number is 268 eliminated roles. Xbox places those cuts within a broader restructuring rather than presenting them as a separate initiative. Booty said the affected areas include Halo Studios, other internal game studios, and the management and central-functions layer. “Central functions” generally means shared operational work that serves multiple teams rather than one particular game: management structures, planning, administration and similar organization-wide support. The announcement does not specify a studio-by-studio or role-by-role breakdown.

The company is also consolidating studios. In this context, consolidation means shifting teams into a different organizational home or combining operations, not necessarily that every affected studio is closing. Still, it can materially change leadership, priorities, processes and the people assigned to a game. It is not merely a new label on an org chart when jobs are also being removed.

  • Rare and World’s Edge, the Age of Empires studio, will join Activision.
  • Activision will form a new, purpose-built team to lead development of the next Halo game.
  • 343 Industries will retain a small staff to support existing Halo games and their communities, but will not develop the next Halo title.
  • Obsidian will join Bethesda while continuing work on Grounded and the previously announced Fallout project.
  • Microsoft Casual Games will join King.
  • Playground and Turn 10 will merge, with a focus on both Forza and Fable.

Several of those changes have their own potential consequences, but the Halo move is the clearest break from the previous setup. Halo Studios and 343 Industries have been closely associated with the franchise’s stewardship. Under the new plan, a small 343 team remains in place for ongoing support, while Activision builds a separate team for the next major game.

Halo’s next game moves to a new Activision-led team

Activision president Rob Kostich said the company is welcoming Halo, Rare and World’s Edge, and characterized the next Halo project as a major responsibility. He said an appropriately capable team is already being assembled with the goal of delivering a new chapter alongside the community.

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.

Related coverage includes Xbox Restructure Cuts 268 Roles as Halo Moves Under Activision.

That statement gives a direction, not game details. No title, release timing, genre, platforms, gameplay structure or returning features were provided. It also does not establish who specifically will staff the new team beyond Activision’s intention to build it. Players should therefore separate the confirmed organizational decision from assumptions about what the next Halo will be.

One practical point is firm: support for existing Halo games and community activity is not being abandoned outright. The smaller 343 team is set to continue that work. “Support” is broader than new-game development, though. It can cover live operations, player communication, community management, maintenance and updates, but Xbox has not outlined the precise scope, cadence or duration of that support.

The broader reshuffle also puts Rare and World’s Edge in the same Activision organization as Halo. That is a reporting-line change, not a disclosed announcement of a shared project, crossover or change in each studio’s game plans. Xbox has not provided project-specific implications for Rare or World’s Edge beyond the move itself.

Ninja Theory enters consultation after two agreements fall through

Ninja Theory, the studio behind Senua, is entering consultation after two agreements involving the team fell through. Arkane is also still in consultation. Xbox did not identify the agreements, explain why they failed, or say what outcomes are being considered for Ninja Theory or Arkane.

Consultation is a formal process in which an employer discusses proposed changes with affected employees or their representatives. Its exact legal requirements and eventual outcomes can vary, so entering consultation should not be treated as a final declaration of closure or a detailed development roadmap. The important confirmed point is that Ninja Theory’s situation is unresolved within this restructuring.

That uncertainty matters for fans of Ninja Theory’s work, but the available information does not support firm claims about upcoming games, cancellations, staffing totals or the studio’s final ownership status. Until Xbox provides those details, those remain open questions rather than conclusions.

Compulsion, Double Fine and Undead Labs have taken different paths

Not every change is a merger into another Microsoft gaming division. Compulsion Games and Double Fine previously became independent from Xbox, taking their back catalogs and intellectual property with them. Intellectual property, often shortened to IP, refers to the creative rights connected to a game or series: its name, characters, setting and related material.

Undead Labs has now made a similar transition. Xbox says State of Decay 3 will nevertheless launch into Game Pass. That distinction is useful. An independent studio can still have a distribution or release agreement with Xbox, and a Game Pass launch does not by itself mean the developer remains part of Xbox’s internal studio group.

For players chiefly waiting on State of Decay 3, the stated takeaway is straightforward: Xbox still plans a Game Pass day-one release. The announcement does not provide a release date, platform list, or additional details on the game itself.

Obsidian, Bethesda, King and the Forza/Fable merger

Obsidian’s move under Bethesda creates a clearer organizational link between the studio and the Bethesda group while leaving its named work intact. Xbox says Obsidian will continue on Grounded and the already announced new Fallout project. That project was separately covered when the restructuring detail emerged, including what remains confirmed about Obsidian’s move under Bethesda and its Fallout assignment.

Importantly, “continue working on” is not a launch promise. It confirms that the work remains in scope following the reporting change, but it does not provide release windows or indicate how far along either project may be.

Microsoft Casual Games joining King similarly connects casual-game operations with a business that specializes in that area. Xbox has not named specific titles or described product changes tied to that move.

Playground and Turn 10, meanwhile, will merge around both Forza and Fable. The two series are quite different in premise, and Xbox has not explained how responsibilities will be divided within the combined organization. What is confirmed is the intended focus on both franchises, rather than an announced abandonment of either. Readers looking specifically at that merger can find the confirmed structure in our report on Xbox combining Playground and Turn 10 for Forza and Fable.

Why the “three quarters complete” claim needs careful reading

Booty’s description of the reset as three quarters complete indicates Xbox views this as one connected, multi-stage plan. But it is a measurement of restructuring progress, not a detailed forecast of future game releases. It does not tell players how many further staffing changes may occur, when consultation processes will end, or when the new Activision Halo team will ship a game.

Likewise, a statement about a strong upcoming lineup should not be read as a list of confirmed release dates. Booty said he would spend time with studios in the coming week and that an all-Xbox town hall is planned for October 6 to assess progress and look ahead. Those plans signal another internal milestone, but the announcement does not say whether new public information will be shared there.

The restructuring’s clearest effect is a redistribution of responsibility. Activision is taking on oversight that includes the next Halo game, Rare and World’s Edge. Bethesda gains Obsidian. King gains Microsoft Casual Games. Playground and Turn 10 become one operation. Meanwhile, some studios have gained independence, and Ninja Theory and Arkane remain in an unresolved consultation stage.

That is a lot of movement behind the familiar Xbox brand, and it is occurring alongside 268 people losing their roles. For audiences tracking games rather than corporate diagrams, the most useful approach is to hold on to the specific commitments—State of Decay 3 on Game Pass at launch, Halo support continuing, Obsidian staying on Grounded and Fallout, and a combined team focused on Forza and Fable—while not filling the unanswered gaps with guesses.