The entertainment/gaming industry is incredibly volatile right now, which means layoffs are happening at a rapid rate. It is depressing to see and now Microsoft has announced that the Xbox Reset continues with 268 positions now being eliminated. This affects Halo Studios, other first-party studios, the central functions layer, and the XGS management team.

Matt Booty says that these actions bring Microsoft around three quarters of the way through their announced restructuring. To go alongside all of these layoffs is corporate restructuring. Studios are being reorganized and potentially folded in to, theoretically, make collaboration easier on the teams, which should hopefully result in better overall games.

Activision

Activision will expand its responsibilities to World’s Edge, as well as Rare. So, yes, Rare will now be a part of Activision. Additionally, Activision will be responsible for developing the new Halo game. I have mixed feelings on this one but I am excited to see what Activision can bring to the table in the Halo franchise. This new Halo game will be developed by a “purpose-built team” that will be separate from Call of Duty. A small team will remain at Halo Studios to support the Halo community and the games already in the market.

Bethesda

The biggest headline regarding Bethesda is that Obsidian is now a part of Bethesda. This is something that makes since due to the close working relationship Obsidian and Bethesda have had over the years. Obsidian is also currently working on a Fallout game. Obsidian’s franchise Grounded will also continue. I’m not sure if that means another new game in the franchise or simply ongoing support for the existing games.

King

King’s responsibilities will expand to Microsoft Casual Games. This will unite two major companies in the space of casual game design and live operations. For those who might not be familiar with King, they are the developer behind Candy Crush Saga, among other games.

Playground and Turn 10

Playground and Turn 10 Studios will officially join forces and become one team. This is another one that makes since with both Playground and Turn 10 making Forza Motorsport and Forza Horizon respectively, in addition to Playground working on Fable. These teams obviously work really well together and this should improve on the already working formula.

Compulsion and Double Fine

As far as some of the other studios go, Compulsion and Double Fine returned to being independent studios in August. This means they have their IP, back catalogs, and runway funding. Undead Labs went a similar route with a new publisher and will continue development on State of Decay 3 that will be available day one on Game Pass.

Ninja Theory & Arkane

The fate of Ninja Theory is currently still up in the air but it doesn’t sound good. There were two potential buyers for Ninja Theory but each one has backed out. Unfortunately what this means is that Microsoft will begin “consultation” with employees on a potential closure, while at the same time trying to find a path forward for the studio. It should be noted that earlier in the earlier some of the studios mentioned earlier were reported to be closing but they were able to remain open. Hopefully the same thing happens with Ninja Theory. Similar consulation is ongoing with Arkane and Microsoft hopes to continue through the end of the year. Hopefully Arkane is allowed to stick around as well as it is never a good thing to see a studio closure.

It is never good to see someone lose their job. I have been laid off myself in the past and it is a horrible experience. Please support those affected in any way that you can, especially if you personally know someone affected by this news.

What do you think about the different teams merging while others might potentially close? Tell us on Bluesky and Twitter.