Cuts across Halo Studios and other first-party studios.
The green "X" sphere XBOX logo.

XBOX continues its reign of terror today as it announces another 268 layoffs across first-party XBOX studios, as well as the "XGS management and central functions layer." Ninja Theory will be shuttered. Several other studios are being shuffled around. As for Arkane, "consultation(...) remains underway."

The unfortunate news was shared with the public earlier today by XBOX executive vice president and chief content officer Matt Booty. Booty had this to say about the various studio reorganizations which are now underway. This includes word that Activision will work on the next Halo game, Obsidian is now under Bethesda, and Playground Games joins with Turn 10 Studios.

  • Activision will expand its remit to World’s Edge, as well as Rare. Activision will also be developing the next Halo title, led by a new, purpose-built team that is separate from ongoing development and plans for Call of Duty. A small team at Halo Studios will continue supporting the Halo community and games in-market.
  • Bethesda will expand its remit to include Obsidian, which will continue its current projects, including Grounded, as well as the new Fallout project made in collaboration with Bethesda Game Studios.
  • King will expand its remit to include Microsoft Casual Games, uniting our two global leaders in casual game design and live operations.
  • Playground and Turn 10 will come together as one studio focused on the Forza and Fable franchises. These two studios have been creative and franchise partners for over a decade, and today’s changes will formally move their work into one team.
Undead Labs seemingly joins Compulsion and Double Fine as gaining their independence from XBOX. From Booty's wording, it sounds like Undead Labs retains their IPs, back catalogs, and runway funding just as Compulsion and Double Fine did. Undead Labs will, with a new publisher, still release State of Decay 3 day one on Game Pass.

When it comes to Ninja Theory, Booty says "two separate agreements (...) fell through." XBOX will "now begin consultation with employees on a proposed closure while continuing to explore other paths forward."

Today's news is a continuation of the planned layoffs that began this past July when XBOX laid off 1,600 employees. At the time, XBOX says they planned to lay off over 1,600 additional employees in the year ahead. Today's layoffs are not the end.