Xbox is laying off another 268 workers today, its chief content officer Matt Booty announced in an internal memo obtained by The Hollywood Reporter. The latest reductions are simply the next round of a broader mission to reduce staff size by 3,200; Xbox is currently about three-quarters of the way through those cuts, first announced in July. Several studies have been affected by today’s news. Undead Labs (State of Decay 3 is coming to Game Pass on day one) will be handed over to its own management; Bethesda is absorbing Obsidian (the studio making the new Fallout game); the King business (Candy Crush) takes over Microsoft’s casual games (Solitaire, Minesweeper); Playground (the Forza: Horizon series) and Turn 10 (Forza Motorsport) will merge; and Ninja Theory is being shut down. And then there’s the big consumer news of the day: Activision, the Call of Duty studio, will create the next Halo game, which THR says will be a full-featured mainline entry in the franchise. The Halo games were previously made by franchise creator Bungie and later by Halo Studios (FKA 343 Industries). Activision also makes the games Crash Bandicoot, Spyro the Dragon, and Tony Hawk Pro Skater. “We are delighted to welcome Halo, Rare and World’s Edge to Activision. It is an honor and responsibility that we do not take lightly. These teams and their games have inspired fans around the world for decades,” Activision president Rob Kostich said in a statement. “For Halo, our goal is clear: to make the best Halo game of all time, worthy of its universe and legacy, while staying true to what made players love it in the first place. It’s a bold ambition, one that this franchise deserves. We’ve already begun assembling a purpose-built team, unique in ability and talent, ready and excited to deliver this next chapter to the community. For the World’s Edge and Rare teams, we can’t wait to start working together.” Read Booty’s note to staff below. Call of Duty Modern Warfare 4 Courtesy of the Activision team. I am writing to share several updates as part of the XBOX reboot outlined earlier this year. First, we are eliminating 268 roles across Halo Studios, other first-party studios, and the core and management functions layer of XGS. Actions completed since July, including studio divestitures, bring us approximately three-quarters of the way toward the previously announced restructuring. I am deeply grateful for what our colleagues have built and know how difficult today will be for those leaving and the teams around them. Secondly, we are reorganizing our studies. The goal is to strengthen our franchises and games by operating fewer business units, aligning groups that already work closely together, and focusing our publishing expertise. Activision will expand its competition to World’s Edge, as well as Rare. Activision will also develop the next Halo title, led by a new purpose-built team that is separate from the development and ongoing plans for Call of Duty. A small team at Halo Studios will continue to support the Halo community and the games on the market. Bethesda will expand its mandate to include Obsidian, which will continue its current projects, including Grounded, as well as the new Fallout project made in collaboration with Bethesda Game Studios. King will expand his scope to include Microsoft Casual Games, uniting our two global leaders in casual game design and live operations. Playground and Turn 10 will join together as a studio focused on the Forza and Fable franchises. These two studios have been creative and franchise partners for over a decade, and today’s changes will formally move their work under a single team. Third, an update on our studio divestitures: In August, Compulsion and Double Fine returned to management with their intellectual property, back catalogs and runway financing. Undead Labs has now made a successful transition on similar terms and, with a new publisher, will release State of Decay 3 on day one on Game Pass. Unfortunately, two separate deals for Ninja Theory fell through. We will now begin consulting with employees on a proposed closure while we continue to explore other paths forward. Consultations with Arkane are ongoing and are expected to continue until the end of the year. Today, our focus should be on supporting those affected and treating each other with care and respect. I will spend time with our studies over the next week. At our town hall on October 6, we will gather as an ALL-XBOX team to reflect on our progress and look toward one of the strongest game lineups in our history. Mate
