Activision Takes Over Next Halo Game as Xbox Announces Major Job Cuts

Xbox is eliminating hundreds of positions and restructuring its flagship Halo franchise amid an ongoing company-wide reset.

Upcoming reductions will affect employees at the Halo-development studio, with Activision assumed as the new developer for future titles in the series.

Industry experts highlighted the strategic shift, noting its implications for Xbox’s flagship intellectual property. Concerns also persist about the future of other key Xbox studios, including Cambridge-based Ninja Theory.

In July, Xbox CEO Asha Sharma announced plans to spin off the Hellblade developer alongside four other teams, aligning with the company’s restructuring efforts. However, Chief Content Officer Matt Booty later disclosed that acquisition attempts for Ninja Theory failed to materialize, with two potential deals collapsing.

The studio will now begin formal consultations with staff regarding proposed closure, though acquisition discussions continue. Of four planned divestitures, three have returned to management oversight while negotiations for Arcane remain active.

The recent announcement of 268 additional layoffs follows Sharma’s July declaration of commencing “the most significant restructure in Xbox history,” which previously resulted in 1,600 immediate reductions within a total plan of 3,600 cuts. The company reports completing approximately 75% of the restructuring process.

Sharma attributed the restructuring to Microsoft’s gaming division being “unhealthy,” despite Game Pass subscription success not growing sufficiently rapidly. She also cited rising computing costs and hardware price increases as external financial pressures during a BBC interview in August.

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