Microsoft has laid off 268 employees across its Xbox division, extending the largest restructuring in the gaming unit’s history as Activision prepares to develop the next ‘Halo’ game and Ninja Theory enters consultation over a proposed closure.
Matt Booty, Xbox’s chief content officer, announced the cuts in a memo to staff on Tuesday. The layoffs primarily affect Halo Studios, other first-party studios, and the Xbox Game Studios, or XGS, management and central functions layer.
Xbox said in July that it was “beginning the most significant restructure in Xbox history”. It cut 1,600 jobs immediately and said 3,600 roles would be eliminated overall. The company now says it is three quarters of the way through the planned overhaul.
The reorganisation shifts control of several established game businesses. Activision will develop the next ‘Halo’ game, while Halo Studios will continue supporting the community and its existing games. The studio recently released Halo: Campaign Evolved in July.
Activision will also manage World’s Edge, the studio responsible for the Age of Empires franchise, and Rare, whose series includes Sea of Thieves. Obsidian will become part of Bethesda. The studios behind Forza Horizon and Fable will be combined.
Ninja Theory is due to begin consultation with employees on a proposed closure. Microsoft had reached two separate agreements to find a buyer for the studio, though both arrangements fell through.
Asha Sharma, the Xbox chief executive, said a central difficulty in the gaming business had been “teams, studios, and functions [that] often operate independently, [making it] harder to work toward a shared goal.”
Xbox said the studio changes are intended to “strengthen our franchises and games by operating fewer business units, aligning groups that already work closely together, and focusing our publishing expertise”. The plan concentrates development and management of several major series under Activision, Bethesda and the combined Forza Horizon and Fable operation, while reducing Xbox’s central staffing and business units.
Comments (0)