What Xbox announced
Xbox published a company-wide memo from chief content officer Matt Booty on September 22, setting out the next stage of Microsoft's gaming reorganization. The changes affect Halo, Rare, World's Edge, Obsidian, Turn 10, Playground Games, Microsoft Casual Games and several studios whose ownership or future is still being resolved.
The clearest player-facing change is Halo. Activision will build the franchise's next title through a purpose-built team that Xbox says is separate from the ongoing Call of Duty organization. A smaller Halo Studios team will remain responsible for the community and games already in market.
How the Xbox studio map is changing
| Group | Confirmed change |
|---|---|
| Activision | Its remit expands to Rare and World's Edge, and it will assemble the team developing the next Halo. |
| Halo Studios | A smaller team continues support for the Halo community and currently available games. |
| Bethesda | Its remit expands to Obsidian, including Grounded and a new Fallout project made with Bethesda Game Studios. |
| King | Microsoft Casual Games moves under King, joining two teams focused on casual games and live operations. |
| Playground Games and Turn 10 | The studios combine into one team focused on the Forza and Fable franchises. |
| Undead Labs | The studio has transitioned away from Microsoft on terms similar to earlier divestitures and will release State of Decay 3 on Game Pass on day one with a new publisher. |
Xbox describes the structure as a way to operate fewer business units and align teams that already work closely together. That explanation is official; whether the new arrangement improves development pace, creative autonomy or release quality cannot be judged from an organizational memo alone.
The human cost: 268 roles are being eliminated
Microsoft says 268 roles are being eliminated across Halo Studios, other first-party studios, Xbox Game Studios management and central functions. Xbox did not publish a studio-by-studio breakdown, so assigning an exact number of losses to Halo Studios, Rare, Turn 10 or another named team would go beyond the public record.
Booty wrote that the changes completed since July, including studio divestitures, put Xbox roughly three-quarters of the way through its previously announced restructuring. That framing supplies corporate context, but it does not reduce the immediate impact on the people whose roles are disappearing.
Ninja Theory faces a proposed closure—not a completed shutdown
Xbox says two proposed agreements for Ninja Theory fell through. Microsoft is now beginning consultation with employees on a proposed closure while continuing to explore other options.
That wording must be handled precisely. A consultation is a formal process, not confirmation that the studio has already closed. The outcome, timetable and effect on any unannounced work remain unresolved.
Arkane is in a separate consultation process expected to continue through the end of 2026. Xbox did not announce a final decision for that studio or provide a new status for its Blade project in this memo.
What the Halo move does—and does not—tell players
The next Halo will be made by a newly assembled Activision team rather than the core Halo Studios group that has carried the franchise under its current and former names. Xbox explicitly separates that team from Call of Duty development, which rules out the simplest assumption that an existing Call of Duty studio is merely being reassigned wholesale.
The announcement does not identify the creative leadership, engine, genre, campaign structure, multiplayer model, launch window or supported platforms. It also does not rename the franchise or announce a release roadmap. Those questions remain legitimate, but none has an official answer in this update.
What to watch next
- The leadership and composition of Activision's purpose-built Halo team.
- A title, format, engine, platforms or release window for the next Halo.
- The result of consultation over Ninja Theory and Arkane.
- How Rare and World's Edge operate within Activision's expanded remit.
- What the combined Playground–Turn 10 structure means for Forza Motorsport, Forza Horizon and Fable.
- The identity and scope of Obsidian's new Fallout collaboration with Bethesda Game Studios.
For now, the responsible reading is narrower than the speculation surrounding the reset. Xbox has confirmed a significant reorganization, job losses and several new reporting lines. It has not yet shown how those decisions will change the games players eventually receive.