Xbox to cut 268 jobs as it shakes up studio structure

Xbox will cut 268 staff as it continues a sweeping restructure across the company.

The latest layoffs, part of the previously announced 3,200 job losses, will impact Halo Studios, other unidentified first-party studios and the XGS management and central functions layer.

As part of the changes, Activision will now expand its remit to cover Sea of Thieves developer Rare and Age of Empires studio World’s Edge.

The publisher will also now be responsible for developing a new Halo game led by a new team. A “small team” at Halo Studios will continue supporting the franchise and titles already released.

Microsoft Casual Games, which operates titles like Solitaire, Mahjong and Minesweeper, will now report to King.

Closures and mergers

Elsewhere, Obsidian comes into the Bethesda fold as it works on a new Fallout project. Playground and Turn 10 will be merged into one studio to focus on the Fable and Forza franchises.

UK-based Hellblade developer Ninja Theory could be set to shut down after Xbox claimed two separate deals for the developer fell through. Consultation with employees on a proposed closure has begun, though other options are also being explored.

Xbox had previously claimed none of its first-party publicly announced games or projects would be cancelled. Ninja Theory's next game, Senua, was revealed during the Xbox Games Showcase in June - a month before the layoffs were announced.

Consultation with Dishonored studio Arkane remains underway and is expected to continue to next year.

As with Compulsion and Double Fine, Undead Labs has gone independent and has found a publisher for State of Decay 3.

“The actions completed since July, inclusive of the studio divestitures, bring us roughly three-quarters of the way through previously announced restructuring,” said Xbox chief content officer Matt Booty.

He added: “The goal is to strengthen our franchises and games by operating fewer business units, aligning groups that already work closely together, and focusing our publishing expertise.”