Xbox confirms 268 role eliminations as Activision takes on the next Halo

Xbox has confirmed a further 268 role eliminations as part of its wider restructuring, alongside a management reshuffle that will place the next Halo game with Activision, move Obsidian under Bethesda and bring Playground Games and Turn 10 together as one studio.

Matt Booty set out the changes in an employee memo published by Xbox Wire on 22 September. “First, we are eliminating 268 roles across Halo Studios, other first-party studios, and the XGS management and central functions layer,” Booty wrote.

The figure is a confirmed total, but Xbox has not said how those roles are divided between Halo Studios, other first-party teams and central Xbox functions. It has also not disclosed which disciplines, projects or countries are affected.

What Xbox has confirmed about Halo, Rare, Obsidian and Forza

The most consequential player-facing change concerns Halo. Xbox says Activision will develop the next Halo title through a new, purpose-built team separate from Call of Duty. A small Halo Studios team will remain in place to support existing Halo games and the community.

That is not confirmation that Halo Studios has closed, been absorbed into Activision or ceased all Halo work. Xbox’s public description is narrower: Activision will make the next title, while Halo Studios retains a smaller role supporting existing games and the community.

The memo also sets out a new reporting and studio structure:

• Activision will take on World’s Edge and Rare.
• Bethesda will take on Obsidian.
• King will take on Microsoft Casual Games.
• Playground Games and Turn 10 will become one studio focused on Forza and Fable.

For Obsidian, the announcement establishes a new home within Bethesda rather than confirming changes to an individual game. The studio’s work on a Fallout project with Bethesda Game Studios has previously been part of TheDashDouble’s reporting on Obsidian’s Fallout project, but Xbox’s new memo does not provide further project-specific detail.

Ninja Theory is not confirmed closed

Ninja Theory’s position requires particular care. Xbox says two potential agreements involving the studio fell through and that it will begin employee consultation on a proposed closure while exploring other options.

That is not the same as a completed shutdown. The consultation process, its timetable and the alternatives Xbox says it is considering have not been publicly detailed. Until Xbox provides an outcome, it is inaccurate to state that Ninja Theory has definitively closed.

Why the memo does not reveal a remaining-layoffs number

The 268 eliminations are part of the fiscal-year 2027 restructuring that Xbox previously said would reduce its team by approximately 3,200 roles. In its July reset memo, Xbox said approximately 1,600 roles were being eliminated at that point, with further reductions planned during the fiscal year.

The new memo says actions since July, including studio divestitures, have put Xbox roughly three-quarters of the way through that restructuring. That wording cannot be used to calculate a reliable number of future job cuts.

Xbox has not disclosed how many roles are connected to divestitures, nor has it explained how it measures progress towards the “roughly three-quarters” figure. Simply subtracting the publicly disclosed 1,600 and 268 eliminations from the earlier approximate 3,200 target would therefore present an unsupported answer.

The company’s reset has unfolded in stages. TheDashDouble previously covered Xbox’s earlier reset plan, while the latest memo adds the newly confirmed studio and franchise arrangements.

For now, the confirmed news is specific: 268 roles are being eliminated; Activision is building the next Halo through a dedicated team; Rare and World’s Edge move to Activision; Obsidian moves to Bethesda; Playground and Turn 10 are being combined; and Ninja Theory faces a proposed closure, not a confirmed one.