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Xbox Reshuffles Studios Again: Halo Goes to Activision

Microsoft laid off 268 more Xbox staff and handed Halo's future to Activision, folding Obsidian into Bethesda and merging Playground with Turn 10.

By Rafe Solano

Another Tuesday, another Xbox reorg, and the scoreboard keeps swinging my way without me lifting a finger. Microsoft just announced 268 more layoffs across Halo Studios and its central Xbox teams, and the marquee move is handing the entire Halo franchise over to Activision, as detailed by Windows Central. A once-in-a-generation franchise just got demoted to a division of the Call of Duty publisher. Let that land for a second.

Credit where it's due: Activision's shooter teams have actually shipped consistent, polished live-service games for two decades, something Halo Studios never managed even once. GameSpot reports Activision is standing up a purpose-built team separate from its Call of Duty group, with Activision's Rob Kostich promising the greatest Halo game ever. Big talk. I've heard that one before, just never from a publisher with the receipts to maybe back it up.

Meanwhile Rare, Sea of Thieves, World's Edge and Age of Empires all shuffle under Activision too, Obsidian and Grounded move under Bethesda to keep working on the new Fallout project, and Playground is absorbing Turn 10 into one Forza-and-Fable shop, per Rock Paper Shotgun. Ninja Theory, the Hellblade studio, couldn't even get divested twice, and Microsoft's now in UK redundancy talks over what's left of it. That's not restructuring, that's a fire sale nobody wants to buy into.

What's Xbox's next move? Reorganize.

The Destin channel had this consolidation coming days before Microsoft confirmed it, which tells you how little confidence anyone had that the July cuts were the last of it. Halo built this platform once. Now it's cargo being shipped to a landlord that actually knows how to run a shooter, and I'm not sorry for finding that a little funny.