Microsoft Xbox Cuts 268 More Jobs, Transfers Halo Development to Activision
Microsoft's Xbox division is cutting an additional 268 jobs and moving future Halo game development to Activision as part of a broader company-wide restructuring.
Microsoft’s Xbox division has announced further job cuts and significant changes to its studio structure as it continues a company-wide reset. The latest move involves the elimination of 268 additional positions and the transfer of development responsibilities for any future Halo games to Activision.
This announcement follows earlier layoffs in July, when Xbox chief executive Asha Sharma revealed that 1,600 jobs were being cut immediately as part of a planned reduction of 3,600 positions overall. The company states that it is now three quarters of the way through this restructure. Sharma cited rising computing prices and hardware costs as external pressures facing the business.
The recent reductions impact staff at the studio currently working on Halo. Under the new arrangement, Halo Studios will continue to support the community and existing games but will not focus on new releases. Instead, Activision will take on the development of future titles in the franchise, which has been a hallmark of the Xbox brand since Microsoft entered the console market in 2001.
Rob Kostich, Activision’s president, stated that the goal is to make the greatest Halo game ever. Activision’s remit will also expand to manage World’s Edge (Age of Empires) and Rare (Sea of Thieves). Jez Corden of Windows Central described the change as a “dramatic move,” while gaming analyst Christopher Dring noted that the shift raises questions about reviving Halo, once considered Xbox’s “crown jewel.”
In other developments, attempts to find a buyer for Ninja Theory failed after two separate agreements fell through. The Cambridge-based studio will now enter consultation with employees regarding a proposed closure, although buyout talks are continuing. Three of the four other affected companies have returned to management, while consultation for Arcane remains under way.
Further consolidation is occurring within the Xbox portfolio. Bethesda will expand its remit to include Obsidian, and the studios behind Forza Horizon and Fable are being combined.