Xbox's Chaotic Layoffs Leave Behind a Trail of Uncertainty

Microsoft's Xbox division has laid off another 268 employees, bringing the total to over 2,100 since the start of the year. The latest cuts have hit Halo Studios particularly hard, with the team being demoted from leading a new entry in the series to support status.

The reins on the series are now being taken by a team at Activision, which has raised questions about continuity and tone. Some fans who felt that recent series entries lacked the magic of Bungie's originals have welcomed this change, but it remains to be seen whether an untested team can revive the series.

Employees at impacted studios, including id Software, have expressed frustration with Microsoft's lack of clear direction and vision for the future. They claim that management has failed to communicate a plan beyond cutting costs and increasing profits.

The situation mirrors shifts in strategy under new Xbox leader Asha Sharma, who has prioritized aggressive growth over sustainability. Rare is joining Activision, Turn 10 and Playground are merging, and Obsidian is being folded into Bethesda to work on Fallout instead of its own original series.