Microsoft Restructures Xbox Amid Major Layoffs

The latest phase of the company's restructuring involves a significant redistribution of its most valuable intellectual properties. Development of the Halo franchise is moving to Activision, where a purpose-built team will take the reins, relegating Halo Studios to a support role. Further shifts place Rare and World’s Edge under the Activision umbrella, while Obsidian Entertainment is being moved to Bethesda Game Studios to focus on the Fallout series. Microsoft is also grouping its casual gaming titles, such as Solitaire and Minesweeper, under the King division, while merging the Playground and Turn 10 studios.

This consolidation follows a difficult period for the brand that began in July with 1,600 initial layoffs. With another 1,600 roles slated for elimination over the coming fiscal year, staff remain in a state of uncertainty. The strategy appears to prioritize centralized management and subsidiary-led development, signaling a departure from the previous operational independence of individual Xbox studios.