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.
GoKawiil's interpretation of the reporting above, not reported fact.
This reshuffle shows Microsoft prioritizing centralized publishing efficiency over standalone studio identities, a shift that could alter creative direction for flagship franchises like Halo. Moving Halo's development into Activision's structure signals how deeply Microsoft is blending its Activision Blizzard acquisition into core Xbox operations, beyond just Call of Duty. The continued layoffs also reflect broader industry cost-cutting even as Microsoft consolidates control over more of its biggest gaming IPs.
- 268 jobs cut across Halo Studios and other Xbox first-party teams
- Activision to lead development of the next Halo game and oversee World's Edge and Rare
- Other studio mergers include Bethesda-Obsidian, King-Microsoft Casual Games, and Playground-Turn 10
Xbox Wireless Controller — With Halo's next chapter now in Activision's hands and big changes rippling across Xbox studios, there's no better time to make sure your setup is ready for whatever comes next. The Xbox Wireless Controller offers reliable, comfortable play across Xbox consoles and Windows PCs, perfect for revisiting Halo classics or jumping into new titles. It's a solid, versatile accessory for any Xbox fan following this franchise shake-up.
See Xbox Wireless Controller on Amazon → Affiliate link — we may earn a commission on purchases, at no extra cost to you. Product picked by AI based on this article; it is not a tested recommendation.Source: theverge.com — Tom Warren, 2026-09-22
Published there as: “Activision is taking over Halo as part of a massive Xbox shake-up”
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