Xbox announces further layoffs and major changes across its studio structure

Microsoft Cuts Deep at Xbox: Halo Moves to Activision, Ninja Theory to Close

In a sweeping restructuring of its gaming division, Microsoft has announced major changes across several of its most prominent studios. The biggest shake-up sees the Halo franchise moving under the Activision umbrella, while Ninja Theory — the Cambridge-based studio behind Hellblade — is set to close. Obsidian Entertainment, Rare, and Turn 10 Studios are also affected by the shuffle.

What's happening at each studio

The reorganization reshapes how Microsoft's first-party teams report and which labels they sit under. Halo's shift to Activision marks a notable change in stewardship for one of Xbox's flagship series. Ninja Theory's closure ends the studio's run under the Xbox Game Studios banner. Obsidian, Rare, and Turn 10 are all impacted by the broader reshuffle, though the full extent of those changes has not been detailed.

Why players should care

These moves touch franchises that millions of players follow closely. Halo's new home could influence the direction of future entries and updates, while Ninja Theory's closure raises questions about the future of its existing titles and any projects in development. For Obsidian, Rare, and Turn 10, the restructuring may affect upcoming releases and long-term support for games like those in the Forza and Sea of Thieves families.

What we still don't know

Microsoft has not yet outlined a timeline for the changes, confirmed which specific projects are affected, or explained what the restructuring means for staff at the studios involved. Details on how Halo's transition to Activision will work in practice also remain unclear.

What happens next

Expect further announcements from Microsoft as the restructuring takes shape, including clarity on project timelines and studio leadership. For now, players should watch for official statements on the status of games tied to the affected teams.

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