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XBOX lays off hundreds more, Activision takes over Halo and more changes

| Last updated: 22 Sep 2026 at 4:10 pm UTC
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More big news coming out of Microsoft / XBOX today, with their big reset continuing with hundreds more staff being let go along with studio shuffles.

As posted on the official XBOX blog from Matt Booty (EVP & CCO of XBOX) they're laying off another 268 people across "Halo Studios, other first-party studios, and the XGS management and central functions layer". On the subject of studio changes here's what they outlined:

  • 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.

XBOX LOGO

That's not all, after multiple attempts at reaching agreements which fell through, Booty said that Ninja Theory will now be potentially closing down. In addition to Compulsion and Double Fine going back indie, Undead Labs also now has a similar agreement to split off.

Having Activision develop the next Halo is going to be a bit weird. Activision were the original publishers of Destiny from Bungie, who did multiple Halo games and now it's circled right back to Activision directly. That worries me a bit too, since Activision (who do Call of Duty) block their modern games on Linux with their anti-cheat - hopefully the next Halo will still work with Proton on Linux.

I really do hope the people let go find their feet quickly either in the gaming industry or elsewhere. What a rough time.

🌐 External Sources: news.xbox.com
Article taken from GamingOnLinux.com.
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14 comments
Jarmer 22 Sep 2026
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I'm going to expand my remit (hey matt booty normal regular humans who totally arent demons sent from hell to destroy all happiness in the universe don't talk like this you corpo dbag pos) to continuing to say that Microsoft just really hates gaming in general, but in particular the gamers themselves. Every single action they do just hurts the industry, hurts the artists, hurts the engineers, hurts the gamers. It's just pain and suffering all around. Just astonishing really, I mean I wish they could point their hatred somewhere else, but then I would feel bad for whatever industry that would be.
Mohandevir 22 Sep 2026
And Microsoft pushing for in-game ads in new patent. What a time to be a Microsoft fan!
Sira 22 Sep 2026
I am really sad to read that Ninja Theory will risk closing completely. Those developers have unique, beautiful ideas that, while much of it saw the light of day through Senua's Saga, their looks into their way of doing the art was ... mesmerising for a lack of better work. Such unique talent and way of doing games. If shuttered, I hope the people behind will continue to carve a new path and continue to do and learn wonderous things with games and the mind 🫢🏼
Geamandura 22 Sep 2026
Only an imbecile would just take Obsidian and slap it under Bethesda, these two couldn't be more antithetic, it's literally a troll for Obsidian and a torturous way to make those employees quit one by one. If anything they should have taken Bethesda and forced it under Obsidian. Of course the incompetent corporate robots are sticking together to the detriment of the consumer, and I can totally see Todd Howard continuing to fail upwards and be Xbox boss in a couple of years. What a perfect soul destroying corporate machine.
MayeulC 22 Sep 2026
Yikes, Activision doing Halo? Ask 343 industries how their CoD-ification of Halo went for them. I'll try to keep an open mind, I guess.

What do Fable and Forza have in common? I don't really get it. Probably better than getting together with Bethesda, if you want to actually release games, though.

Late 2010s consolidation was very bad for the industry. I am glad that some studios were able to split off again.

At this rate, they are going to run out of people to let go...

Last edited by MayeulC on 22 Sep 2026 at 7:23 pm UTC
Hippohop 22 Sep 2026
Buyers and users of Microsoft software beware. Companies are amoral (neither moral nor immoral) and their executives, if the company is publicly traded, are legally obligated to turn a profit and to continuously attempt to do so.

After headline-grabbing buyouts of other studios, the profit is usually clawed back through the firing of everyone they can get away with, usually by blaming middle-management or some such boogeyman in modern gaming. It is also accomplished by outsourcing any future labour to countries with either fewer labour protections, or are simply cheaper to pay.

If you care about these things, be mindful of what you use and purchase. If you don't care, I won't make you care, but when you look up and wonder why things are the way they are you should consider it then.
Lamp 22 Sep 2026
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Are we sure we don't want a Nicki Minaj themed mjolnir skin?
Kivarnis 22 Sep 2026
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Quoting: MayeulCWhat do Fable and Forza have in common? I don't really get it. Probably better than getting together with Bethesda, if you want to actually release games, though.
They have co developed the franchise, that's why. They are used to working together.
Savor592 22 Sep 2026
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Quoting: JarmerI'm going to expand my remit (hey matt booty normal regular humans who totally arent demons sent from hell to destroy all happiness in the universe don't talk like this you corpo dbag pos) to continuing to say that Microsoft just really hates gaming in general, but in particular the gamers themselves. Every single action they do just hurts the industry, hurts the artists, hurts the engineers, hurts the gamers. It's just pain and suffering all around. Just astonishing really, I mean I wish they could point their hatred somewhere else, but then I would feel bad for whatever industry that would be.
If they could direct it at the share holders, that would be a welcome surprise.
Arehandoro 22 Sep 2026
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They had to find money in the budget from getting Kojima last week...
yndoendo 23 Sep 2026
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At the moment I would only support these big business if the works were unionized.

Younger me would love a new Fallout, Elder Scrolls, ...

Older me is disgusted how these big businesses treat their employees like disposable property.
hardpenguin 23 Sep 2026
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Avowed 2 was planned by Obsidian before Microsoft/Xbox came sticking their dirty fingers into their business 😭
Jarmer 23 Sep 2026
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Quoting: GeamanduraOnly an imbecile would just take Obsidian and slap it under Bethesda, these two couldn't be more antithetic, it's literally a troll for Obsidian and a torturous way to make those employees quit one by one. If anything they should have taken Bethesda and forced it under Obsidian. Of course the incompetent corporate robots are sticking together to the detriment of the consumer, and I can totally see Todd Howard continuing to fail upwards and be Xbox boss in a couple of years. What a perfect soul destroying corporate machine.
Agreed, I can't really see any good future for Obsidian as a studio. Which is just IMMENSELY SAD AND DEPRESSING. The world of Eora is probably my #1 fav setting for any rpgs ever.

Quoting: hardpenguinAvowed 2 was planned by Obsidian before Microsoft/Xbox came sticking their dirty fingers into their business 😭
I loved Avowed1 and was super pumped for this, but even more-so I was looking forward to a PoE3 which now I doubt we'll ever get, or if we do it'll be a bastardized horrifying cash grab ala Dragon Age Veilguard.
Purple Library Guy 23 Sep 2026
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Sometimes the thing that makes me shake my head in disbelief is that any good games manage to get made. Kudos to all the people swimming against the tide!

Last edited by Purple Library Guy on 23 Sep 2026 at 7:43 pm UTC
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