Xbox Eliminates 268 Roles, Activision Working on Next Halo Amid Reorganization

World's Edge and Rare now fall under the Call of Duty publisher, while Playground Games and Turn 10 Studios have formed into a single studio.

Posted By | On 22nd, Sep. 2026

Halo Campaign Evolved_04

Xbox has confirmed additional layoffs across its first-party studios and a reorganization of several others. The division has eliminated 268 roles at Halo Studios and other first-party studios, as chief content officer Matt Booty notes that the division is “roughly three-quarters of the way through previously announced restructuring.”

The next Halo is being developed by Activision, which is led by “a new, purpose-built team” separate from those working on Call of Duty. In the meantime, Halo Studios will have a “small team” to support the community and existing games, but it seems that those rumored remakes may be finished after all.

World’s Edge (Age of Empires) and Rare (Sea of Thieves) will also fall under Activision’s purview. Obsidian is now under Bethesda, though projects like Grounded 2 and the new Fallout will continue as originally planned. Playground Games and Turn 10 Studios will now operate as a single studio while King (Candy Crush) now includes Microsoft Casual Games.

Overall, it’s a pretty significant consolidation, minus the layoffs at Halo Studios. Some may view it as long overdue, given reported long-standing management issues and a disconnect with fans about the franchise, even if hundreds of employees are collateral damage. At the very least, it seems there are no changes to the other studios, though given rumors of layoffs at Blizzard Entertainment, it may be too soon to celebrate. Stay tuned for more updates.


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