GoKawiilMicrosoft cuts 268 Xbox jobs, shifts next Halo game to Activision team
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.
GoKawiil's interpretation of the reporting above, not reported fact.
The reorganization shows Microsoft consolidating creative control of major franchises under Activision and Bethesda rather than keeping Xbox Game Studios as a flat structure, signaling a shift toward centralized management post-acquisition. Spinning off smaller studios like Undead Labs suggests Microsoft is trimming overhead while still betting on games like State of Decay 3 to reach multiple platforms, including PlayStation.
- 268 jobs cut, bringing Xbox roughly three-quarters through its previously announced restructuring.
- Activision now controls the next Halo game, plus Rare and World's Edge; Obsidian moves under Bethesda.
- Compulsion Games, Double Fine and Undead Labs become independent studios, keeping their IP and funding.
Xbox Wireless Controller — With Halo's future shifting to a new Activision-led team, now's a great time to make sure your setup is ready for upcoming Xbox titles. The Xbox Wireless Controller offers reliable, comfortable gameplay across Xbox consoles and Windows PCs, perfect for jumping into Halo or any other first-party title. It's a staple accessory for any Xbox fan following these studio changes.
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: engadget.com — Kris Holt, 2026-09-22
Published there as: “Xbox 'reset' continues with 268 job cuts and Activision making the next Halo game”
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