Microsoft Overhauls Gaming Business with Layoffs and Franchise Shift
Microsoft is continuing its radical transformation of its gaming business with another wave of layoffs and studio rearrangements. A total of 268 workers, mostly from Halo Studios (formerly 343 Industries), have been cut as part of the 3,200 announced in July. The cuts also include people from Xbox Games Studio management.
The Halo franchise is undergoing a major change with Halo Studios shifting to a caretaker/support role for existing projects. Development of the next Halo game will occur at Microsoft-owned Activision, by an as-yet-unidentified team. This marks a significant shift in the direction of the iconic franchise.
Other studios within Xbox Game Studios are also undergoing changes. Rare, World's Edge, and Obsidian will report to different parts of the company's gaming group. Turn 10 is merging with Playground Games. This restructuring comes as Microsoft continues its efforts to streamline its gaming division.