Xbox Restructuring: Microsoft Transfers Halo Development to Activision

Microsoft's Xbox gaming division is undergoing significant restructuring, including large-scale layoffs and studio reorganizations. In a letter to employees, Matt Booty, Xbox's Chief Content Officer, announced that 268 positions at Xbox Studios have been cut. This is in addition to the previously scheduled 3,200 layoffs by 2026, with half of those already eliminated.

The restructuring also includes transferring Halo development from Microsoft to Activision. The next Halo game will be developed under Activision's leadership by a new team not involved in Call of Duty projects. 'When it comes to Halo, our goal is clear: to create the best Halo game in history, one worthy of its universe and legacy, while remaining true to what players loved about the series in the first place,' said Activision President Rob Kostich.

Bethesda will oversee Obsidian Entertainment, and the two companies will collaborate on an upcoming Fallout game. Xbox-owned studios, including Halo Studios (formerly 343 Industries), Rare, and World's Edge, are being transferred to Activision's management. Microsoft's Casual Games division is now led by mobile gaming giant King.