Xbox 'Reset' Continues: Layoffs, Activision Takes Over Halo

Microsoft's Xbox division is undergoing significant changes as part of its 'reset' strategy. The latest round of cuts includes 268 layoffs affecting Halo Studios, other first-party developers, and the Xbox Game Studios management and central functions team. This brings the total number of layoffs to around 1,600 since July.

Xbox boss Matt Booty acknowledged the difficulty this would cause for those leaving, saying 'I am deeply grateful for what our colleagues have built.' The company is about three-quarters of the way through its planned restructuring of Xbox, with more changes expected in the coming months.

One notable change is that Activision will be taking over development of the next Halo game from a new team. This move comes as part of Activision's expansion to cover developers Rare and World's Edge. Only a small team at Halo Studios will continue, focusing on supporting existing games in-market.

Bethesda is also growing its footprint with the addition of Obsidian, whose projects including Grounded and Fallout will continue alongside Bethesda Game Studios' own work.