Xbox is changing the way several of its first-party teams are organized, with 268 roles being eliminated as part of Microsoft’s continuing restructuring.
The latest changes affect Halo Studios, other Xbox development teams, and central Xbox functions. Several studios are also moving into different organizational groups, creating a noticeably different structure around some of Microsoft’s biggest gaming franchises.
The most significant change involves Halo.
Activision is now set to lead development of the next Halo game through a new team created specifically for the project. Elsewhere, Bethesda is taking responsibility for Obsidian, Playground Games and Turn 10 are being brought together, and Rare and World’s Edge are moving under Activision.
Ninja Theory faces a different situation. Xbox has started employee consultations over a possible closure, although the studio has not been confirmed as closed.
Quick Summary
- Xbox is eliminating 268 roles as its restructuring continues.
- Activision will lead development of the next Halo game through a new team.
- Rare and World’s Edge are moving into Activision’s group.
- Bethesda will oversee Obsidian.
- Playground Games and Turn 10 will operate together around Forza and Fable.
- King will take responsibility for Microsoft Casual Games.
- Ninja Theory is facing consultation over a possible closure.
- Undead Labs is moving forward with a new publishing arrangement for State of Decay 3.
- Xbox says the wider restructuring is roughly three-quarters complete.
The Latest Xbox Changes Go Beyond Job Cuts
The 268 eliminated roles are the most immediate part of the announcement.
But the larger story is where Xbox is putting its studios.
Microsoft has been reorganizing its gaming business for months, and this latest round changes the relationships between several teams that players already know.
Rather than every studio continuing under the same structure, Xbox is grouping some teams together and shifting others toward larger publishing organizations.
That makes this more than a headcount story.
The people working on major franchises are being affected, but so are the management structures around those franchises.
The Next Halo Game Is Moving to a New Team
Halo is getting one of the biggest organizational changes.
The next mainline Halo project will be developed by a new Activision team created specifically for the franchise.
That team will operate separately from Activision’s Call of Duty development, while a smaller group at Halo Studios remains focused on supporting the existing Halo games and their communities.
For players, the immediate takeaway is simple: the next Halo game is still in development, but the team responsible for making it is changing.
Xbox has not announced a new release date or provided additional gameplay information as part of this restructuring announcement.
So there is no confirmed reason to assume the project itself has been delayed or changed creatively.
What has changed is the organization behind it.
Activision Is Also Taking on Rare and World’s Edge
Activision’s expanded role reaches beyond Halo.
Rare and World’s Edge will also move into the Activision side of Microsoft’s gaming organization.
That puts Sea of Thieves and Age of Empires under the same broader group as the new Halo development team.
The announcement does not say that either franchise is being cancelled or that their existing games are being abandoned.
This is an organizational change.
That distinction is worth keeping because studio restructuring can easily lead to speculation about individual games, even when Microsoft hasn’t announced such changes.
Bethesda and Obsidian Will Work Under the Same Group
Another major adjustment concerns Bethesda and Obsidian.
Xbox is bringing Obsidian under Bethesda’s broader organization.
Obsidian will continue working on its existing projects, including Grounded and its work connected to the new Fallout project being developed with Bethesda Game Studios.
There is no announcement here that Obsidian is being shut down or that its current projects have been cancelled.
The change is about where the studio sits within Microsoft’s first-party structure.
That may sound like an internal detail, but it becomes more relevant when several studios are being reorganized at the same time.
Playground Games and Turn 10 Are Coming Together
Two other familiar Xbox teams are also being combined.
Playground Games and Turn 10 will operate as a single studio with responsibility for Forza and Fable.
The two teams already have a long working relationship, so Xbox is presenting the move as a closer alignment between developers that have previously collaborated.
Turn 10 is closely associated with Forza Motorsport, while Playground Games has worked on Forza Horizon and Fable.
The new arrangement puts those franchises inside one studio structure.
Xbox has not announced that either franchise is being cancelled or fundamentally changed because of the move.
King Will Handle Microsoft Casual Games
The restructuring also reaches beyond traditional console development.
Xbox says King will take responsibility for Microsoft Casual Games.
That adds another part of Microsoft’s gaming portfolio to an organization already known for its mobile expertise.
It is another example of Xbox trying to group related areas of its business together rather than maintaining as many separate structures.
Ninja Theory’s Future Is Still Unclear
Ninja Theory is the most uncertain case in the announcement.
According to Xbox, two separate agreements involving the studio fell through.
The company has therefore started consulting with employees about a potential closure.
That does not mean Ninja Theory has already shut down.
The consultation is part of the process, and Xbox says it is still looking at other possibilities for the studio.
That distinction matters because there is currently no basis for describing Ninja Theory as a closed developer.
The studio is known for games including Hellblade: Senua’s Sacrifice and Senua’s Saga: Hellblade II, but the latest announcement does not provide a new future plan for the team.
For now, its status remains unresolved.
Undead Labs Is Taking a Different Path
Undead Labs is another interesting part of the restructuring because its outcome is different.
The studio is moving away from its previous Xbox management arrangement and continuing under a new publishing setup.
The important part for players is that State of Decay 3 remains in development.
Xbox has confirmed that the game will launch day one on Game Pass under the new arrangement.
That means the restructuring isn’t producing the same result for every studio.
Some teams are being consolidated.
Some are being moved under different organizations.
Ninja Theory is facing a consultation process.
Undead Labs, meanwhile, is continuing with a new arrangement around its upcoming game.
What Does This Mean for Xbox’s Games?
That is the question players will naturally ask.
The answer is still limited.
Xbox has announced substantial organizational changes, but it has not provided a new status for every game connected to the affected studios.
That means it would be premature to assume a project has been delayed, cancelled, redesigned or otherwise affected simply because its developer now reports through a different part of Xbox.
The confirmed changes are organizational.
For Halo, the next game has a new development team.
For Forza and Fable, Playground and Turn 10 are becoming one studio.
For Obsidian, the studio is moving under Bethesda.
For Rare and World’s Edge, Activision is taking responsibility for their group.
For Ninja Theory, the future is still being discussed.
Those are the facts available right now.
Why Xbox Is Making These Changes
Xbox says the restructuring is part of a broader effort to simplify its organization and bring related operations closer together.
The company has been reducing the number of separate business structures across its gaming operation and looking for ways to group teams with overlapping responsibilities.
There is also a financial side to the changes, given the number of roles being removed.
But Xbox has not provided a detailed explanation for the future plans of every individual studio beyond the changes outlined in the announcement.
That makes it important not to fill the gaps with assumptions.
A studio changing management does not automatically tell us what will happen to its next game.
The Reset Is Not Finished
Microsoft says the latest actions bring its previously announced restructuring to roughly three-quarters completion.
That means more changes are still possible.
Some processes are also continuing. Ninja Theory’s consultation is one example, while other studio changes remain part of the broader transition.
So this probably isn’t the final version of Xbox’s first-party structure.
The organization players see today could look different again once the remaining parts of the restructuring are completed.
What Players Should Watch Next
The most useful things to watch now are the games themselves.
The next Halo announcement should reveal more about the new team’s direction.
Obsidian’s existing projects will show whether its move under Bethesda has any visible effect on development.
The combined Playground and Turn 10 team will eventually have to demonstrate how its new structure works across Forza and Fable.
And Ninja Theory’s consultation will determine whether the proposed closure goes ahead or another outcome emerges.
For State of Decay 3, the important milestone remains its eventual launch under the new publishing arrangement.
Until those details arrive, the organizational changes are more certain than their long-term effects.
Xbox’s First-Party Map Is Changing
The latest announcement leaves Xbox with a substantially different internal structure.
Activision is taking on a larger role around Halo, Rare and World’s Edge.
Bethesda is expanding its group to include Obsidian.
Playground and Turn 10 are becoming one team.
King is taking responsibility for Microsoft’s casual gaming operations.
Undead Labs is moving forward with a new publishing arrangement.
And Ninja Theory is entering a consultation process that could determine whether the studio continues.
Alongside those changes, 268 roles are being eliminated.
That’s a significant reshaping of Xbox’s development organization, even though the full consequences for individual games are not yet known.
For players, the next chapter will be defined by what these reorganized teams actually deliver.
FAQ
How many Xbox roles were cut?
Xbox announced the elimination of 268 roles as part of its latest restructuring.
Who is making the next Halo game?
A new team within Activision will develop the next Halo game. Halo Studios will retain a smaller team supporting the existing games and community.
What happened to Rare and World’s Edge?
Both studios are moving under Activision’s broader organization.
Is Obsidian being shut down?
No. Obsidian is continuing its existing projects while moving under Bethesda’s organization.
Are Playground Games and Turn 10 becoming one studio?
Yes. Xbox says the two teams will operate together around the Forza and Fable franchises.
Is Ninja Theory closed?
No. Xbox has begun consultation over a possible closure, but the studio has not been confirmed as closed.
What is happening with State of Decay 3?
Undead Labs is continuing under a new publishing arrangement, and State of Decay 3 is confirmed for day-one Game Pass availability.
Is Xbox’s restructuring finished?
No. Xbox says the latest changes bring the broader restructuring approximately three-quarters of the way toward completion.
The Bottom Line
Xbox’s latest announcement changes much more than its headcount.
Several major studios are being reorganized, some are being combined, and others are moving under different parts of Microsoft’s gaming business.
The next Halo game is moving to a new Activision-led team. Obsidian is joining Bethesda’s group. Playground and Turn 10 are becoming one studio. Rare and World’s Edge are moving under Activision, while Ninja Theory’s future remains undecided.
There are still plenty of unanswered questions.
But one thing is already clear: Xbox’s first-party development structure is changing again.
And the next few months should show what those changes mean for the games players are waiting for.
Stay tuned to Baskin Gamer as we bring you the latest updates on game news, releases, and more