Xbox Resets Development Studios with Major Studio Mergers
Xbox's recent restructuring efforts have led to significant changes in its development studios. The company has announced that Activision will be taking over Halo game development, with a new team separate from Call of Duty projects.
Other studio mergers include the combination of Obsidian and Bethesda, as well as the union of Playground and Turn 10 under one studio focused on Forza and Fable franchises. These changes aim to strengthen franchises and games by operating fewer business units and aligning groups.
A small team at Halo Studios will continue supporting the Halo community and games in-market, while Activision expands its remit to include World's Edge and Rare. Xbox CEO Asha Sharma had previously announced a 'reset' of the company that led to layoffs, which has now resulted in studio mergers.
Bethesda will continue Obsidian's current projects, including Grounded and the new Fallout project made in collaboration with Bethesda Game Studios. King will expand its remit to include Microsoft Casual Games, uniting global leaders in casual game design and live operations. Undead Labs has transitioned on similar terms as Compulsion and Double Fine, returning their IP and back catalogs.
The restructuring efforts have resulted in a mixed bag for employees, with 268 roles eliminated at Halo Studios and other first-party studios. Ninja Theory's agreements fell through, and consultation with employees is now underway, while Arkane remains under consultation until the end of the year.