Xbox Game Studios is developing three new games following restructuring

Following a major corporate restructuring by Microsoft, only three teams remain directly under Xbox Game Studios: The Coalition, inXile Entertainment, and Playground Games. Each team is currently working on a major project.

The first phase of layoffs began on July 6, when Microsoft announced plans to cut roughly 20% of its structure over 12 months. This was followed by a new wave on September 22, during which another 268 employees were laid off. According to Matt Booty, the restructuring is approximately 75% complete, meaning further changes are still possible.

Activision received control over Halo, Rare, and World’s Edge. Blizzard continues working on World of Warcraft, Diablo, and a new StarCraft, while King took over the Microsoft Casual Games division. Bethesda controls Obsidian, which is working on a new Fallout, alongside Bethesda Game Studios handling The Elder Scrolls 6.

Playground Games and Turn 10 have been merged into a single team that will handle Forza and Fable. Mojang reports directly to Xbox head Asha Sharma. The future of Ninja Theory remains uncertain, as Microsoft was unable to sell the studio and is considering closing it.

As a result, The Coalition is preparing Gears of War: E-Day, Playground Games is developing Fable, and inXile Entertainment is working on Clockwork Revolution.