Xbox Cuts 268 Jobs and Moves Next Halo Game to Activision
Microsoft's latest Xbox restructuring cuts 268 roles, hands the next Halo to Activision, moves Rare and Obsidian, and merges Playground with Turn 10.
Microsoft announced another round of Xbox restructuring on 22 September 2026, with 268 roles cut across Xbox Game Studios and development of the next Halo game handed to Activision. The changes were announced by Xbox chief content officer Matt Booty.
According to GeekWire, a new team at Activision, led by Activision president Rob Kostich, will build the next Halo, while a smaller group at Halo Studios keeps supporting the existing games and community. The cuts hit Halo Studios, other first-party teams, and Xbox Game Studios management and central functions.
The reshuffle also moves several well-known studios:
- Rare (Sea of Thieves) and World's Edge (Age of Empires) move under Activision
- Obsidian Entertainment joins Bethesda
- Microsoft Casual Games moves under King, the Candy Crush maker
- Playground Games and Turn 10 Studios merge into one studio focused on Forza and Fable
- Undead Labs becomes independent
Gematsu reports that sale talks for Ninja Theory, the Hellblade developer, fell through and that consultations on closing the studio are under way. Compulsion Games and Double Fine had already returned to independence in August, keeping their games and IP.
Why it matters
Putting Halo and Call of Duty under one publisher is a big shift in how Microsoft runs its biggest shooter brands. For developers, it is another sign that large platform holders are still cutting costs and consolidating teams rather than expanding them.
