Xbox Announces Studio Reorganization, Activision to Develop Next Halo Game

More layoffs will continue, and the future of Arkane and Ninja Theory is in doubt.

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Xbox has announced a reorganization of all the studios under it, as part of its recently confirmed reset, which will result in further layoffs. As part of the reorganization, Activision will now develop the next Halo game instead of Halo Studios. 

In a new message, Xbox COO Matt Booty outlines the changes:

    • Activision will expand its remit to World’s Edge, as well as Rare. Activision will also be developing the next Halo title, led by a new, purpose-built team that is separate from ongoing development and plans for Call of Duty. A small team at Halo Studios will continue supporting the Halo community and games in-market.
    • Bethesda will expand its remit to include Obsidian, which will continue its current projects, including Grounded, as well as the new Fallout project made in collaboration with Bethesda Game Studios.
    • King will expand its remit to include Microsoft Casual Games, uniting our two global leaders in casual game design and live operations.
    • Playground and Turn 10 will come together as one studio focused on the Forza and Fable franchises. These two studios have been creative and franchise partners for over a decade, and today’s changes will formally move their work into one team.

In addition, while Undead Labs will continue to operate under a new publisher and will still release State of Decay 3, “two separate agreements for Ninja Theory fell through.” As such, it will now discuss a proposed closure with employees while also pursuing under options. Plans for Arkane’s future are still under discussion and will continue until the end of the year. Finally, Xbox is eliminating 268 roles across Halo Studios, other first-party studios, and the XGS management and central functions layer. The announcement comes a few days after Xbox took over publishing for Kojima Productions’ PHYSINT after PlayStation stepped away from the deal

SourceXbox
Saras Rajpal
Saras Rajpal
Saras is a passionate writer, with a love for immersive sims, superhero games, and Persona. He graduated college with a Bachelor of Arts with a concentration in creative writing. He's been with Final Weapon since 2023.

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