Microsoft’s Xbox cuts 268 roles as Activision takes over ‘Halo’

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 latest cuts affect Halo Studios, other first-party studios and Xbox Game Studios management and central functions, Xbox MSFT Chief Content Officer Matt Booty said in the memo on Tuesday.

Under the reorganization, Activision will also oversee World’s Edge and Rare. The next “Halo” game will be developed by a new team separate from Activision’s ongoing “Call of Duty” work, while a smaller group at Halo Studios will continue supporting existing games and the franchise’s community.

Other changes include Bethesda taking responsibility for Obsidian, King adding Microsoft Casual Games to its operations, and Playground and Turn 10 combining 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 MSFT 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.