Activision to develop next Halo game as Xbox cuts 268 jobs

Xbox has announced the removal of 268 roles and a fundamental shift in the production of its flagship Halo franchise, marking the latest phase in a company-wide restructuring. The reduction in staff will affect the studio currently responsible for the Halo series, with the publisher of Call of Duty, Activision, set to assume development duties for any future titles. This move forms part of a broader wave of layoffs and organisational changes as the gaming division continues its significant restructure.

Matt Booty, chief content officer at Xbox, confirmed the changes in a blog post published on Tuesday. He stated that attempts to find a buyer for the Cambridge-based developer Ninja Theory had failed after two separate agreements collapsed. Consequently, the studio, which is known for the Hellblade games, will enter into consultation with employees regarding a proposed closure, although potential buyout talks are still ongoing. Booty added that of the four other studios affected by similar plans, three have returned to standard management, while consultations for the studio Arcane remain under way.

The announcement of the latest job cuts follows remarks by Xbox chief executive Asha Sharma in July, who described the current period as the most significant restructure in the company’s history. At that time, 1,600 jobs were cut immediately, with a total of 3,600 planned losses across the division. The company has stated that it is now three quarters of the way through this planned restructure. Sharma previously noted that while platforms such as the Game Pass subscription service had created meaningful value, they had not grown quickly enough to sustain the division’s health. She also cited a crisis in rising computing prices and hardware costs as an external pressure on the business.

Xbox said that Halo Studios, which recently released Halo: Campaign Evolved in July, will continue to support the game’s community and work on existing titles rather than focusing on new releases. Rob Kostich, president of Activision, said the goal is to make the greatest Halo game ever while staying true to what made players love the series. He confirmed that a purpose-built team has already begun assembling to deliver the next chapter of the franchise. In addition to leading new Halo development, Activision’s remit will expand to manage the World’s Edge studio, home to the Age of Empires franchise, as well as the studio Rare and its Sea of Thieves series.

The restructuring also involves the consolidation of other companies within the portfolio. Bethesda, the developer of the Elder Scrolls series, will expand its remit to include Obsidian, the studio behind Fallout New Vegas. Furthermore, the studios behind Forza Horizon and Fable will be combined. Gaming analysts have commented on the strategic shift, with some noting that Halo has not been the crown jewel of the Xbox brand for over a decade due to years of mismanagement. Others believe that bringing the franchise under Activision’s leadership makes sense, provided the company remains mindful of preserving the unique qualities of the series.