Xbox has laid off 268 employees across Halo Studios, other first-party teams and Xbox Game Studios management, part of a previously announced plan to cut 1,600 jobs through July 2027. As part of the restructuring, Activision will take over development of the next Halo game and also manage Rare and World's Edge, while Obsidian continues working under Bethesda on Fallout and Grounded 2, and Playground and Turn 10 merge to handle Forza and Fable together.
Microsoft has restructured its Xbox game studios, placing Halo Studios (formerly 343 Industries), Rare and Age of Empires developer World's Edge under Activision's control. The move accompanies 268 additional layoffs, with the remaining Halo team reduced to a small community-support unit while Activision assembles a new team to lead the franchise's future.
Microsoft is cutting 268 more jobs across Xbox as part of the restructuring it began in July, with Halo Studios, first-party developers and central Xbox Game Studios functions most affected. A newly formed team under Activision will develop the next Halo title, while Rare and World's Edge also move under Activision's oversight, and Obsidian shifts to Bethesda. Compulsion Games, Double Fine and Undead Labs have been spun off as independent studios with funding and IP rights intact.
Microsoft's Xbox division is transferring future Halo game development to Call of Duty publisher Activision, part of a fresh round of 268 layoffs. The move follows Ninja Theory's failed sale talks, with the Hellblade studio now facing a proposed closure after two potential buyers walked away. Xbox says it is three-quarters through a restructuring plan that has already eliminated 1,600 jobs immediately, with 3,600 total cuts planned.
Microsoft is cutting 268 jobs across Halo Studios and other first-party teams as part of its ongoing Xbox restructuring, while also consolidating studios under fewer publishing umbrellas. Activision will now oversee World's Edge and Rare and take charge of developing the next Halo title through a newly formed team separate from Call of Duty, leaving a smaller crew at Halo Studios to support existing games. Other changes include Bethesda absorbing Obsidian, King merging with Microsoft Casual Games, and Playground Games combining with Turn 10 to focus on Forza and Fable.
Activision published a report ahead of Call of Duty: Modern Warfare 4's October 22 launch detailing the scale of the video game cheating economy, citing research from threat intelligence firm Intorqa. The study estimates the market generates between $5.1 billion and $13.8 billion yearly, with cheat subscriptions for just 15 popular titles alone bringing in roughly $3.5 billion, and the remainder coming from account trading, boosting, and spoofing hardware sold through organized distributor networks.
Activision publicly posted video of a legal representative delivering cease-and-desist papers to Elocarry, a cheat seller who marketed aimbots and ESP tools for Call of Duty and other games. Following the video, Elocarry's Discord confirmed cheat sales were paused pending internal review, while Activision touted broader enforcement stats: over 375 disrupted reseller operations, 80+ cease-and-desist notices, and 30+ shuttered vendors.
Court documents and industry estimates show major games like The Last of Us Part II and Horizon Forbidden West cost over $200 million each, while Call of Duty: Black Ops Cold War topped $700 million across its life cycle. GTA VI, in development for nearly a decade, is expected to surpass all of these figures even before factoring in its eventual online mode.
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