By Paula Beaton An announcement this afternoon has confirmed more Xbox layoffs, changes to four studios, and the news that Call of Duty developer Activision will take over development of the next Halo game.
Earlier today, we head rumors of Xbox layoffs and that has now been confirmed. In total, 286 roles will be eliminated across “Halo Studios, other first-party studios, and the XGS management and central functions layer.”
This is the next part of the Xbox layoffs announced in July, when a total of 3,200 job cuts were revealed for 2026.
Xbox also announced four major changes to its studios, including the huge news that Activision will be developing the next Halo title.
From Xbox:
“Activision will expand its remit to World’s Edge, as well as Rare. Activision will also be developing the next Halo title, led by a new, purpose-built team that is separate from ongoing development and plans for Call of Duty. A small team at Halo Studios will continue supporting the Halo community and games in-market.
Bethesda will expand its remit 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 its remit to include Microsoft Casual Games, uniting our two global leaders in casual game design and live operations.
Playground and Turn 10 will come together as one 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 into one team.”
Matt Booty explained that Activision will develop “the next Halo title,” and will be “led by a new purpose-built team that is separate from ongoing development and plans for Call of Duty. A small team at Halo Studios will continue supporting the Halo community and games in-market.”
There’s no word yet when we can expect the next Halo game, or whether Activision has plans for a series reboot.
Rob Kostich, president of Activision, released a statement about the proposed move:
“For Halo, our goal is clear: make the greatest Halo game ever, worthy of its universe and legacy, while staying true to what made players love it in the first place. It is a bold ambition, one that this franchise deserves. We have already begun assembling a purpose-built team, unique in capability and talent, ready and excited to deliver this next chapter with the community.”
The news has already received a mixed reaction from Halo fans, with some saying Halo is “ruined” while others joked about wild celebrity skin crossovers and monetization. Others were cautiously optimistic, welcoming the change of hands as an opportunity to breathe new life into the franchise.
Xbox also confirmed that Undead Labs will still release State of Decay 3 as a day one launch on Game Pass.
The news for Nina Theory isn’t as good. According to Xbox, “two separate agreements for Ninja Theory” have fallen through and they’re in consultation with employees over a “proposed closure” while also exploring “other paths forward.”
Also from Xbox:
“Consultation with Arkane remains underway and is expected to continue through the end of the year.”
Xbox’s Matt Booty shared a message of support for all those affected by the layoffs:
“Today, our focus should be on supporting those affected and treating one another with care and respect. I will spend time with our studios over the next week. At our October 6 town hall, we will come together as an ALL-XBOX team to reflect on our progress and look ahead to one of the strongest game lineups in our history.”
The Xbox layoffs news doesn’t come as a surprise and was expected following the last round of job cuts, but it makes us wonder, what other changes are ahead for Xbox this year and into 2027?
We already heard rumors that Xbox was planning to drop day one games on Game Pass, later quashed, and a rumor that in-game ads could be coming.
Ultimately, we’ll need to wait and see what happens, so stay tuned here for all the latest Xbox news.