Microsoft Restructures Xbox Game Studios; Activision Takes Over Halo and Sea of Thieves
Microsoft is continuing its restructuring efforts within Xbox Game Studios by transferring key franchises like Halo, Age of Empires, and Sea of Thieves to Activision. As part of the changes, Microsoft will lay off an additional 268 employees at Halo Studios, bringing total layoffs in the Xbox division this year close to nearly 1,900 out of a planned 3,200 by June 2027. Activision is assembling a new team specifically for developing the next Halo title. The move marks a significant shift as Microsoft had previously moved Halo development to Unreal Engine 5 and rebranded the studio from 343 Industries to Halo Studios in recent years. Meanwhile, World’s Edge (Age of Empires) and Rare (Sea of Thieves) are also joining Activision under this restructuring. Other changes include merging Turn 10 Studios with Playground Games for Forza Horizon and Fable development, moving Microsoft's casual games unit from Bethesda to King, and Obsidian transitioning closer to Bethesda for a new Fallout title. The Xbox reset is now described as roughly three-quarters complete.
Topics: Activision Game Studios Halo Layoffs Microsoft Xbox