Xbox Announces Halo Layoffs and Major Changes in Big ‘Reset’

Microsoft’s extensive workforce reduction within its Xbox division persists. Xbox Chief Content Officer Matt Booty confirmed on Tuesday that 268 positions are being eliminated across Halo Studios, various first-party developers, and the Xbox Game Studios management tier. In an internal memo distributed to personnel, Booty detailed the latest structural shifts within the gaming sector, which notably transitions the iconic *Halo* intellectual property over to Activision.

Additionally, Booty verified that Microsoft intends to shutter Ninja Theory, the studio behind *Hellblade*. The future remains uncertain for the recently teased *Senua*, the continuation of *Senua’s Saga: Hellblade 2*.

Under the new alignment, Activision will also assume oversight of Rare and World’s Edge, the studio behind *Age of Empires*. Furthermore, Activision will spearhead the creation of the upcoming *Halo* installment. Booty noted that this project will be “driven by a dedicated, newly formed unit operating independently from ongoing *Call of Duty* operations and pipelines. Meanwhile, a streamlined team at Halo Studios will remain operational to assist the existing player community and live games.”

According to Booty, efforts to secure an external buyer for Ninja Theory ultimately fell through. Consequently, Microsoft is “initiating formal consultations with staff regarding a proposed shutdown while continuing to evaluate alternative directions.” Meanwhile, discussions concerning Arkane—the developer behind *Dishonored* and *Blade*—are ongoing and projected to extend through the conclusion of the year.

Halo Studios bears the brunt of ongoing Xbox workforce reductions

This latest wave builds upon previous cutbacks disclosed in July, when Xbox CEO Asha Sharma eliminated 1,600 positions as part of a broader strategy to shrink the total headcount by 3,200 employees over a twelve-month span. Those earlier measures resulted in structural divorces for studios like Double Fine Productions and Compulsion Games, which transitioned back to independent operations, alongside the divestment of Undead Labs and Ninja Theory to undisclosed third parties.

The sweeping downscaling has affected personnel across numerous subsidiaries, encompassing Activision, Bethesda/ZeniMax, Blizzard, King, Mojang, and the core Xbox Game Studios framework.

“We now find ourselves competing not only against industry behemoths, but equally against agile independent developers. Owning every premier independent studio is neither feasible nor advisable,” Sharma stated in a previous communication. Sharma also emphasized a commitment to removing bureaucratic management layers to foster greater operational agility across departments.

The recent Xbox downsizing reflects decades of strategic missteps just as much as recent overexpansion.

Source: Polygon