Xbox Transfers Rare and Halo to Activision, Announces Studio Closures and Job Cuts

Major Changes in Xbox's Structure

Xbox has made headlines with the transfer of the legendary UK studio Rare and the Halo franchise to Activision. Alongside this, the company has proposed the closure of Ninja Theory and announced extensive job cuts at Halo Studios. This restructuring was detailed in a post on Xbox Wire, following prior reports of layoffs.

Details on the Restructuring

• Ninja Theory's Status: Microsoft stated that attempts to sell Ninja Theory did not succeed, leading to a consultation process regarding its potential closure. Meanwhile, Undead Labs has successfully transitioned to a new publisher and will release State of Decay 3 on Game Pass.
• Halo Studios' New Direction: The next installment in the Halo series will be developed by a new team, distinct from those working on Call of Duty. A small group will remain at Halo Studios to support the existing Halo community and games.

Context of the Changes

The restructuring is part of a broader strategy termed a "resetting of the business" by CEO Asha Sharma. This has included divesting five studios, with Compulsion Games and Double Fine regaining independence recently. The announcement also highlighted that Xbox aims to reduce its workforce by 3,200 jobs this year; approximately 800 more cuts are anticipated.

Impact on Halo and Rare

Rare, known for its online game Sea of Thieves, has faced challenges, including the cancellation of Everwild. Halo Studios, formerly 343 Industries, has seen a tumultuous history with its recent release, Halo: Campaign Evolved, receiving mixed reviews. As part of the restructuring, Microsoft is positioning itself to invest in core franchises like Fallout, Diablo, and StarCraft while consolidating its shooter brands under Activision's stewardship.