Xbox is reshaping its internal development structure, moving the Halo franchise to Activision and cutting 268 jobs across its studios. This restructuring signals a major strategic shift for the console maker as it consolidates resources and reassigns key franchises to external partners. Players and industry observers should watch closely as these changes affect the future of major Xbox-exclusive titles and the stability of several well-known development teams.
Activision builds dedicated team separate from Call of Duty
The Halo series, which has long been a cornerstone of the Xbox brand, will now be developed by Activision. Xbox Chief Content Officer Matt Booty confirmed that Activision will assign a purpose-built team to this task. This team will operate separately from the developers working on the Call of Duty franchise. A smaller group at Halo Studios will remain to support existing games and the community in-market.
The internal shakeup involves significant movement of other studios within the Xbox Game Studios umbrella. Obsidian Entertainment will move under Bethesda to work on a new Fallout title. Rare and World's Edge are shifting their oversight to Activision. Turn 10 and Playground Games are combining into a single studio entity. Undead Labs will become an independent company while retaining the State of Decay 3 intellectual property.
Job cuts are a central part of this restructuring, with 268 positions eliminated across the division. Ninja Theory faces potential closure after two attempts to sell the studio failed. Xbox has begun consultation regarding this proposed closure while exploring other alternatives. Arkane Lyon remains in consultation, with the process expected to continue through the end of 2026.
This announcement marks a definitive end to the era of internal development for the Halo franchise at Xbox. The company is now relying on external partners like Activision to drive the next entry in the series. The internal consolidation aims to streamline operations across the remaining first-party studios. The long-term impact on game quality and release schedules remains to be seen as these transitions take effect.
Source: DEXERTO
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