Microsoft's Xbox division is eliminating 268 jobs and reorganizing several of its game studios, with Activision taking responsibility for development of the next Halo title, according to a staff memo cited by Variety. The cuts affect Halo Studios, other first-party studios and Xbox Game Studios management and central functions, Xbox Chief Content Officer Matt Booty said in the memo on Tuesday. Under the reorganization, Activision will also oversee World's Edge and Rare, with the next Halo game developed by a new team separate from Activision's ongoing Call of Duty work, while a smaller group at Halo Studios continues supporting existing games and the franchise's community. Bethesda will take responsibility for Obsidian, King will add Microsoft Casual Games to its operations, and Playground and Turn 10 will combine into a single studio focused on the Forza and Fable franchises. Xbox is also continuing efforts to divest some studios: Undead Labs has transitioned to a new publisher and plans to release State of Decay 3 on Game Pass on its launch day, two proposed agreements involving Ninja Theory fell through and Xbox plans to begin consultations with employees over a possible closure, while discussions involving Arkane remain ongoing. The latest actions follow Xbox's July announcement of plans to cut as many as 3,200 jobs, or about 20% of its workforce, as part of a broader restructuring.
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