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Activision to take over Halo amid Xbox layoffs

Forbes reports that Xbox announced Halo's move to Activision, with major layoffs planned at Halo Studios. The Verge reports 268 Xbox job cuts and says Ninja Theory may close.

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Forbes reports that Xbox announced Activision will take over Halo, with major layoffs planned at Halo Studios. CharlieIntel says Halo Studios will become a support studio for currently available titles. The Verge reports that Sea of Thieves developer Rare and World's Edge, the studio behind Age of Empires, are also moving to Activision. It also reports that Microsoft is laying off 268 Xbox staffers and Ninja Theory may close. Two deals to sell Ninja Theory fell through in summer 2026, according to The Verge's Tom Warren.

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Activision will develop the next Halo game as part of a broad restructuring of Xbox studios, according to an internal memo from Xbox chief content officer Matt Booty published by The Verge. The new Halo team will be separate from the teams working on Call of Duty, while a smaller group at Halo Studios will continue supporting games already on the market.

Booty said the change is intended to strengthen Xbox’s franchises by combining groups that already work closely together and operating fewer business units. The memo names 268 eliminated roles across Halo Studios, other first-party studios, and Xbox management and central functions.

A new home for several Xbox franchises

The reorganization broadens Activision’s remit beyond Call of Duty. Rare, the team behind Sea of Thieves, and World’s Edge, which oversees Age of Empires, will move under Activision. The memo also places Obsidian with Bethesda, while Microsoft Casual Games moves from Bethesda to King. Playground Games and Turn 10 Studios are being combined around Forza and Fable.

The plan leaves Halo Studios with a narrower role than it has held since taking over the franchise from Bungie. Booty’s memo says a small team will support the Halo community and in-market games, while the next flagship release shifts to the newly formed Activision team. The company did not announce a title, release window or detailed development plan for that game.

The restructuring also has consequences outside the reporting lines. Booty said two proposed agreements to sell Ninja Theory fell through and Microsoft will begin consultation with employees on a proposed closure, while continuing to explore other paths. That is not a completed shutdown, but it underscores how the reset is reshaping the Xbox organization as well as its franchise ownership.

TLDR

A new home for several Xbox franchises

Activision to take over Halo amid Xbox layoffs

TLDR

A new home for several Xbox franchises

Activision to take over Halo amid Xbox layoffs

16 Sources

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A new home for several Xbox franchises

Combined views

Sentiment

Summary

TLDR

A new home for several Xbox franchises

Sentiment

A new home for several Xbox franchises

16 Sources

Sentiment

Summary

Sentiment