‘Halo’ to move under Call of Duty publisher as Xbox announces layoffs
Microsoft's Xbox division is undergoing a major restructuring, including 3,200 job cuts, studio mergers, and a shift in intellectual property focus. The next mainline Halo game will be developed by Activision, a Call of Duty publisher. CEO Asha Sharma and chief content officer Matt Booty are leading the consolidation of studios. The restructuring follows a brand reset and a shift toward new IP.
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- ✓ Microsoft is reducing the Xbox workforce by 3,200 employees, representing approximately 20 percent of the division.
- ✓ The next mainline Halo game will be developed by Activision.
- ✓ Xbox cut 268 roles on September 22 and merged 6 studios into 4 units under Activision, Bethesda and King.
- ✓ CEO Asha Sharma and chief content officer Matt Booty are leading a consolidation of studios.
What changed
Xbox confirmed that Activision will develop the next Halo game with a new team, while Halo Studios continues supporting Halo Infinite and other existing games.
Live updates
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Xbox layoffs: Halo shifts to Call of Duty publisher amid 3,200 job cuts
Microsoft's Xbox division is undergoing a major restructuring, including 3,200 job cuts, studio mergers, and a shift in intellectual property focus. The next mainline Halo game will be developed by Activision, a Call of Duty publisher. CEO Asha Sharma and chief content officer Matt Booty are leading the consolidation of studios. The restructuring follows a brand reset and a shift toward new IP.
Why it matters
The Xbox restructuring is part of a larger effort to refocus the company's gaming division. The layoffs represent approximately 20% of the Xbox workforce. The company is also divesting five first-party game studios as part of the reset. This move comes as Microsoft aims to adapt to changing market conditions and prioritize new initiatives.
What is confirmed
- Microsoft is reducing the Xbox workforce by 3,200 employees, representing approximately 20 percent of the division.
- The next mainline Halo game will be developed by Activision.
- Xbox cut 268 roles on September 22 and merged 6 studios into 4 units under Activision, Bethesda and King.
- CEO Asha Sharma and chief content officer Matt Booty are leading a consolidation of studios.
Still unconfirmed
- Xbox is planning three more rounds of layoffs in October, November, and January.
- Several more waves of Xbox layoffs are apparently planned for 2027.
- Developer alpha hardware for Project Helix is planned for 2027.
What to watch next
- Further details on Xbox studio mergers and layoffs
- Confirmation of additional layoffs in 2027
- Release and pricing announcements for Project Helix hardware
confidence 90%Sources used for this update (9)
- fortune.com — Hachette’s CEO says AI shortcuts are creating a ‘worse C-suite'
- www.kucoin.com — Non-gamer CEO Asha Sharma accelerates restructuring of ...
- www.polygon.com — Xbox reportedly planning 3 more rounds of layoffs - Polygon
- shattered.io — Xbox Merges 6 Studios Into 4 as Cuts Hit 75% [2026]
- screenrant.com — Even More Xbox Layoffs Reportedly Coming In 2027 - Screen Rant
- vgkami.com — Xbox Confirms Activision Is Making the Next Halo Game
- vgkami.com — Xbox Layoffs and Studio Mergers: What’s Confirmed in October 2026
- windowsforum.com — Xbox Restructuring: 3,200 Job Cuts, Xbox Labs and Project ...
- tech.yahoo.com — Never finishing the fight: Where did Xbox go wrong with Halo?
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Xbox cuts 3,200 jobs and divests five studios in brand reset
Microsoft is reducing the Xbox workforce by 3,200 employees, representing approximately 20 percent of the division. As part of a brand reset, the company will divest five first-party game studios. This restructuring follows the transfer of the next mainline Halo game to Activision and a shift toward new intellectual property. CEO Asha Sharma and chief content officer Matt Booty are leading a consolidation of studios while a new entertainment division, XP, manages film and television adaptations.
Why it matters
Xbox is consolidating its studio operations to prioritize new IP and streamline development. This shift moves the Halo franchise under the Call of Duty publisher to leverage a purpose-built team. These moves occur amid broader job market challenges affecting US tech companies.
Still unconfirmed
- Xbox will cut 3,200 workers, which is about 20 percent of the gaming division's total workforce.
- Xbox will divest five of its first-party game studios.
- Developers at Ninja Theory reported layoffs affecting several team members.
What to watch next
- Official confirmation of the five studios being divested
- Announcement of the first new intellectual property under the reset
- Details on the size of the purpose-built Halo team at Activision
confidence 70%Sources used for this update (2)
- outrungaming.com — XBOX cutting 3,200 jobs, divesting five studios in brand 'reset'
- economictimes.indiatimes.com — microsoft layoff announcement News and Updates from The ...
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Xbox Cuts Jobs and Shifts Halo to Activision
Microsoft has cut 268 Xbox jobs while transferring the next mainline Halo game to Activision. Activision will lead future development through a purpose-built team, while a smaller Halo Studios crew supports existing titles. Xbox leadership, including CEO Asha Sharma and chief content officer Matt Booty, announced an internal reset involving studio consolidation and a pivot toward new intellectual property. Additionally, Microsoft established a new entertainment division named XP to oversee film and television adaptations.
Why it matters
The strategic realignment shifts resources away from legacy franchises as Microsoft spins off studios and prioritizes fresh intellectual property. Xbox CEO Asha Sharma stated in a town hall that the division must focus on new IP to survive. The changes dismantle previous structures at Halo Studios while placing a flagship franchise under Activision.
What is confirmed
- Microsoft cut 268 Xbox jobs as Activision took over the next Halo game.
- Activision will lead the next Halo game through a new purpose-built team.
- A smaller Halo Studios team will support current games.
- Xbox CEO Asha Sharma and chief content officer Matt Booty warned of an internal reset involving extensive studio consolidation.
- Microsoft created a new entertainment division named XP to manage film and television adaptations under veteran leadership.
Still unconfirmed
- The company cut 3,200 jobs to refocus strategy and spin off studios.
What to watch next
- Official details from Xbox regarding the upcoming Halo project under Activision
- Further announcements on studio spinoffs and new intellectual property investments
confidence 95%Sources used for this update (5)
- wearemainstreet.org — Xbox Cut 3,200 Jobs to Refocus Strategy - We are Main Street
- www.polygon.com — Xbox 'Won’t Survive' Without New IP, CEO Says - Polygon
- www.gamingideology.com — Microsoft Moves Next Halo Game to Activision in Xbox Reset
- www.theclick.gg — Who Is Making the Next Halo Game? Activision’s New Halo Team ...
- www.gsmdome.com — Microsoft Cuts 268 Xbox Jobs as Activision Takes Over Next ...
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Xbox Shifts Halo to Activision Amid Layoffs and Studio Overhaul
Microsoft has transferred development of the next mainline Halo game to Activision while eliminating 268 positions across Xbox. Xbox boss Asha Sharma and chief content officer Matt Booty warned of an internal reset that involves extensive studio consolidation. Halo Studios is out, with Activision taking over future game development. And Microsoft leadership created a new entertainment division named XP to manage film and television adaptations of games under veteran leadership.
Why it matters
The corporate restructuring drastically alters the internal structure of Xbox, impacting multiple major development teams such as Playground, Turn 10, Obsidian, and Bethesda. While traditional operations undergo dismantling through studio closures and consultations at Ninja Theory and Arkane, Halo Studios has been left severely downsized. The franchise transition to the Call of Duty publisher marks a strategic pivot for the property after years of underperformance.
What is confirmed
- Microsoft eliminated 268 positions across Xbox during a corporate overhaul.
- Development of the next mainline Halo game is moving to Activision.
- Xbox CEO Asha Sharma announced the formation of a new Xbox entertainment division called XP.
Still unconfirmed
- Halo Studios reportedly has just 30 employees remaining following mass layoffs.
- Halo Studios leadership is reportedly not moving to Activision as part of the transition.
- Halo Studios still intends to publish new novels despite the restructure.
- Remaining Halo Studios staff are focused on Halo Fest and a Campaign Evolved update.
- A December update is planned for Halo.
- Playground and Turn 10 are merging, while Obsidian is placed under Bethesda.
What to watch next
- The December update for Halo and further details on the transition to Activision.
- The official output and project slate from the newly formed XP entertainment division.
confidence 100%Sources used for this update (8)
- www.theverge.com — Xbox’s ‘reset’: all the news about Microsoft’s looming layoffs and studio closures
- collider.com — Giving Halo to the Call of Duty Publisher Is the Best Move for the Franchise
- gamesbeat.com — Xbox launches entertainment division XP with veteran leadership - GamesBeat
- www.youtube.com — HALO - YouTube
- h5reforged.dev — Halo 5 Reforged — The entire fight. On PC.
- thatparkplace.com — Halo Studios Reportedly Down to 30 Employees After Mass Layoffs
- www.bognor.news — Microsoft hands Halo game development to Activision following ...
- twistedvoxel.com — Halo Studios Leadership Reportedly Not Joining Activision
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Xbox Cuts 268 Jobs as Halo Moves to Activision
Microsoft has eliminated 268 positions across Xbox while transferring development of the next mainline Halo game to a new team under Activision. The corporate overhaul also shifts other major properties, merging Playground and Turn 10 while placing Obsidian under Bethesda. Undead Labs departs, and Ninja Theory faces consultation alongside Arkane. Microsoft leadership calls the measures an Xbox reset, though industry observers characterize the extensive studio consolidation and layoffs as a dismantling of traditional internal operations.
Why it matters
The broader technology sector has recorded over 190,000 job losses for the year. This corporate restructuring follows earlier efforts by Xbox leadership to reshape internal development pipelines and franchise distribution models.
What is confirmed
- Microsoft is cutting 268 jobs across Xbox.
- Development of the next mainline Halo game is moving to a new team under Activision.
- Playground and Turn 10 are merging as part of the Xbox reset.
- Obsidian is moving to Bethesda under the structural changes.
Still unconfirmed
- Ninja Theory and Arkane face potential closure or active consultation as part of the studio changes.
- Undead Labs leaves Xbox as part of the studio realignment.
What to watch next
- Formal updates regarding the operational status of Ninja Theory and Arkane
- Further integration timelines for Halo development under Activision
confidence 100%Sources used for this update (4)
- tech.yahoo.com — Tech layoffs tracker 2026: All the job losses across Xbox, Apple, Oracle, Uber, TikTok, Meta and others
- www.theclick.gg — Xbox Reset: Every Studio and Franchise Affected - The Click
- colombiaone.com — Microsoft Moves Halo Development to Activision in Major Xbox ...
- opencritic.com — Microsoft Keeps Calling It an XBOX Reset, but It Looks More ...
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Xbox Moves Halo to Activision Amid Mass Layoffs and Restructuring
Xbox leadership has transferred the management and development of the Halo franchise to Activision, alongside titles like Sea of Thieves and Age of Empires. The structural overhaul involved the elimination of 268 roles, primarily affecting Halo Studios, which was previously known as 343 Industries. Xbox CEO Asha Sharma formally dismissed rumors of an outright Xbox sale during a New York Times interview while confirming the ongoing corporate reset. The franchise transition places the military science fiction series under the publisher responsible for Call of Duty as the broader restructuring reaches approximately three-quarters completion.
Why it matters
The franchise originated with developer Bungie in November 2001 alongside the launch of Halo: Combat Evolved. The series recently expanded with the July 2026 release of Halo: Campaign Evolved, a remake powered by Unreal Engine 5. The recent workforce reductions follow a long history of labor instability across the video game industry.
What is confirmed
- Xbox eliminated 268 roles on September 22, 2026, as part of a restructuring.
- Halo development has moved to Activision alongside Sea of Thieves and Age of Empires.
- Xbox CEO Asha Sharma ruled out any Xbox sale during an interview with the New York Times.
- Halo Studios was previously known as 343 Industries.
Still unconfirmed
- Unlimited Xbox Cloud Gaming is ending for Game Pass subscribers beginning in November.
What to watch next
- Further details on the progress of the Unreal Engine 5 remake Halo: Campaign Evolved under Activision management
- Additional announcements regarding studio divestitures as the Xbox restructuring reaches completion
confidence 95%Sources used for this update (11)
- www.halowaypoint.com — Halo - Official Site (en)
- www.avclub.com — Insomniac lets players turn off the dreaded "fart trail" from
- windows.gadgethacks.com — Xbox Reset Layoffs and Studio Divestitures Amid Cloud Caps << Windows Tips :: Gadget Hacks
- www.windowscentral.com — No, Xbox didn't pay $400 million for Hideo Kojima's 'PHYSINT' | Windows Central
- en.wikipedia.org — Halo (franchise) - Wikipedia
- www.halopedia.org — Halopedia, the Halo wiki
- en.wikipedia.org — Halo (TV series) - Wikipedia
- www.techtimes.com — Xbox CEO Sharma Rules Out Sale as Halo Development Moves to Activision - Tech Times
- nonprofitquarterly.org — Amid Mass Layoffs at XBOX, the Fight for Equity in the Video Game Industry Continues | Nonprofit Quarterl....
- gamelistzone.com — Xbox Hands Halo to Activision, Cuts 268 Roles: What the Reset ...
- opencritic.com — Massive Xbox Restructure sees Halo Move to Activision ...
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Xbox layoffs: Halo game development moves to Activision
Microsoft's Xbox division has laid off 268 employees, primarily from Halo Studios, as part of a broader restructuring. The next Halo game will now be developed by Activision, the publisher of Call of Duty. This move integrates Halo under the management of Activision, Xbox's largest acquired studio. The layoffs and restructuring continue a trend of workforce reductions within Microsoft's gaming division.
Why it matters
The changes reflect a significant shift in Xbox's gaming strategy and studio organization. Microsoft acquired Activision in 2022, and this move brings one of Xbox's core franchises under Activision's management. The layoffs and restructuring have raised concerns about the impact on Xbox's gaming capabilities and future projects.
What is confirmed
- Microsoft's Xbox division laid off 268 employees as part of a broader restructuring.
- The next Halo game will be developed by Activision.
- Halo Studios was significantly impacted by the layoffs, with only a handful of employees remaining.
Still unconfirmed
- Halo Studios may have only 20 staff left after the layoffs.
What to watch next
- The release date of the next Halo game
- Further layoffs or restructuring within Xbox's gaming division
- The impact of the restructuring on Xbox's future gaming projects
confidence 85%Sources used for this update (7)
- americanbazaaronline.com — Xbox’s layoff wave cuts jobs as Microsoft reshuffles Halo, Forza
- www.lowyat.net — Activision To Develop Next Halo Game As Xbox Continues Its Reset - Lowyat.NET
- gamerant.com — Halo Studios Reportedly Hit Very Hard by Xbox Layoffs
- kotaku.com — Xbox's Restructuring Is A 'Reverse Acquisition In Slow Motion'
- outrungaming.com — XBOX announces nearly 300 layoffs, studio changes in new memo
- op.game — Xbox Layoffs: Halo Moves to Activision, Obsidian to Bethesda
- gaminghq.eu — Halo Studios Reportedly Gutted by Xbox Layoffs as Activision ...
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Microsoft cuts hundreds of Xbox jobs and shifts Halo to Activision
Microsoft has laid off hundreds of employees, including those in Xbox roles in Washington, as part of a broader organizational overhaul. As a result of this reset, the next Halo game will move to Activision, the publisher of Call of Duty. This shift integrates one of Xbox's core first-party franchises under the management of its largest acquired studio. The layoffs continue a trend of workforce reductions within the company's gaming division.
Why it matters
Halo is a foundational franchise for the Xbox brand. Moving its development or publishing to Activision signals a significant change in how Microsoft manages its internal studios. This occurs amid a period of restructuring termed a reset by Xbox.
What is confirmed
- Microsoft cut hundreds of jobs, including roles within Xbox.
- The next Halo game is shifting to Activision.
- Layoffs affected hundreds of workers in Washington.
What to watch next
- Official confirmation from Microsoft regarding the specific number of employees cut
- Details on the development timeline for the next Halo game under Activision
confidence 100%Sources used for this update (5)
- The Washington Post — ‘Halo’ to move under Call of Duty publisher as Xbox announces layoffs
- news.xbox.com — Continuing Our Reset
- GeekWire — Microsoft cuts hundreds more jobs, shifts next ‘Halo’ game to Activision in Xbox overhaul
- The Verge — Xbox is barely Xbox anymore
- seattletimes.com — Microsoft layoffs hit hundreds in WA again, Xbox roles included
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