Microsoft folds Halo development into Activision amid new Xbox layoffs

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.