Xbox Restructuring Sparks Further Layoffs and Franchise Fears

Microsoft's restructuring of its Xbox division has led to another round of layoffs, this time affecting 268 employees across Halo Studios and other first-party developers. This move comes on top of earlier cuts made in July, which left thousands of jobs lost and several studios sold off.

The latest restructuring sees Halo Studios no longer leading the development of the next Halo game, with Activision taking over instead. The decision has raised concerns about the future of one of Xbox's most iconic franchises. Meanwhile, other changes include Turn 10 Studios and Playground Games being combined into a single studio focused on Forza and Fable games.

Rare and World's Edge will now report to Activision, while Obsidian Entertainment is moving under Bethesda. Microsoft Casual Games will be moved underneath King, which has sparked concerns about the absorption of Xbox Game Studios into other publishers acquired by Microsoft.