Xbox Announces Major Layoffs and Studio Restructuring
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Xbox has confirmed significant layoffs and structural changes across its studios, including the transfer of the Halo franchise to Activision. The restructuring will affect various teams, including potential closure for Ninja Theory.
Overview of Xbox's Restructuring
Xbox has officially announced extensive changes to its studio structure, which will include layoffs and the merging of several studios. This follows an earlier wave of layoffs in July that impacted 1,600 employees, with another 1,600 expected by the end of Microsoft's fiscal year.
Key Changes and Layoffs
In a statement from Xbox COO Matt Booty, it was revealed that 268 roles would be eliminated across Halo Studios, other first-party studios, and the Xbox Game Studios management layer. Booty noted that the restructuring is about 75% complete.
Major Studio Changes
- Halo Franchise: Activision will take over the Halo franchise, establishing a new dedicated team for its development while a small team at Halo Studios will continue to support existing games.
- Obsidian Entertainment: Known for games like The Outer Worlds, Obsidian will merge with Bethesda while continuing to work on current projects.
- Turn 10 Studios: This studio will merge with Playground Games, focusing on the Forza and Fable franchises.
- Rare: The Sea of Thieves developer will also come under Activision's management.
- Ninja Theory: The studio faces potential closure after two separate agreements fell through, with consultations now beginning with employees.
Support for Affected Employees
Booty emphasized the importance of supporting those impacted by the layoffs and restructuring during this challenging time. He plans to engage with studios in the upcoming week and highlighted the strong game line-up expected in the near future.
These changes mark a significant shift within Xbox as it navigates its restructuring process and aims to streamline its operations across its game development studios.