GoKawiilMicrosoft reshuffles Xbox studios, moves Halo development amid new layoffs
Microsoft announced further restructuring at Xbox as part of cuts affecting roughly 3,200 employees, consolidating several studios and shifting development of Halo to a different team. Obsidian is moving from Xbox Game Studios to Bethesda to focus on Fallout, Microsoft's casual games like Minesweeper and Solitaire are shifting to King, and Playground and Turn 10 are merging into a single studio.
GoKawiil's interpretation of the reporting above, not reported fact.
These moves signal a shrinking, more centralized Xbox under CEO Asha Sharma's 'reset' strategy, which prioritizes a handful of proven franchises over broader in-house development. With repeated layoffs and studio consolidations, Microsoft appears to be betting on fewer, bigger hits rather than a diverse portfolio, raising questions about the future scope of Xbox as a distinct brand and platform.
- Halo's development is being handed to a new team, reflecting a major shake-up for Xbox's flagship franchise.
- Obsidian shifts to Bethesda to focus on Fallout, while casual titles move under King, consolidating Microsoft's gaming divisions.
- The changes are part of a broader 3,200-person layoff and restructuring push aimed at making Xbox reach a billion daily users.
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Published there as: “Xbox is barely Xbox anymore”
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