Microsoft Unveils Revised Xbox Structure Amid Ongoing Restructuring

Microsoft is revamping its Xbox division as part of a broader restructuring effort, resulting in 268 job cuts. This move comes on top of the 1,600 layoffs announced in July, and the company has indicated that up to 3,200 positions could be eliminated across the division by June 2027.

Xbox Chief Content Officer Matt Booty outlined the changes in a memo titled 'Continuing the reset', stating that the restructuring is around three-quarters complete. The revised structure will see Activision take responsibility for Rare and World's Edge, as well as establish a new team to develop the next Halo game.

The reorganization aims to consolidate business units and reduce the number of teams across the gaming division. Obsidian will be absorbed into Bethesda, with its existing projects continuing, including Grounded and a new Fallout project in collaboration with Bethesda Game Studios.