Gaming
Xbox cuts 268 jobs and proposes closing Ninja Theory
Activision will lead a new Halo team, while Playground and Turn 10 combine and Arkane’s consultation runs through 2026.
Xbox is eliminating 268 roles across Halo Studios, other first-party studios, and the Xbox Game Studios management and central-functions layer. The company says the actions completed since July, including studio divestitures, put it roughly three-quarters of the way through its previously announced restructuring. The update was sent to employees in an announcement on Xbox Wire.
For players, the most consequential change is the next Halo project. Activision will develop it through a new purpose-built team separate from ongoing Halo development and Call of Duty plans. A small team at Halo Studios will continue supporting the Halo community and games currently in the market. The announcement provides no release date, price, platform, or cast for the next Halo, so this is a change in stewardship rather than a product reveal.
Fewer studio units, broader remits
Xbox is also consolidating management around existing franchises. Activision will take on World’s Edge and Rare, Bethesda will add Obsidian, and King will add Microsoft Casual Games. Obsidian will continue its current projects, including Grounded and a new Fallout project made in collaboration with Bethesda Game Studios. Playground and Turn 10 will combine into one studio focused on the Forza and Fable franchises, formally bringing together teams Xbox says have worked as creative and franchise partners for more than a decade.
Ninja Theory faces a proposed closure
Compulsion and Double Fine returned to management in August with their intellectual property, back catalogs, and runway funding. Undead Labs has made a similar transition and, with a new publisher, will release State of Decay 3 day one on Game Pass. Two separate agreements for Ninja Theory fell through, and Xbox will begin consultation with employees on a proposed closure while continuing to explore other paths forward. Consultation with Arkane remains underway and is expected to continue through the end of 2026. Matt says he will spend the following week with Xbox studios, with an all-Xbox town hall scheduled for October 6, 2026.