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Microsoft cuts 268 more Xbox jobs, shifts Halo development to Activision

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GoKawiil Brief

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.

Why It Matters

GoKawiil's interpretation of the reporting above, not reported fact.

The reshuffle suggests Microsoft is trying to consolidate overlapping studios and reduce duplicated work rather than simply shrink output, folding smaller teams into larger publishing arms like Activision and Bethesda. The unresolved fates of Ninja Theory and Arkane Lyon indicate further closures or sales could still follow, which would signal deeper contraction in Xbox's first-party lineup beyond this announced round of cuts.

Key Takeaways
Worth a Look

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Source: techspot.com — Daniel Sims, 2026-09-22

Published there as: “Xbox lays off 268 more people as Activision takes over Halo and Bethesda absorbs Obsidian”

Read the original report → The summary and analysis above are GoKawiil's own, written from reporting by the source above. Facts and quotes belong to the original publisher.