Xbox cuts 268 jobs: next Halo to Activision, Obsidian to Bethesda, Playground merges with Turn 10

Xbox has confirmed 268 more job cuts and a major studio reorganization, Matt Booty wrote in an Xbox Wire note to Team Xbox on September 22, 2026. The cuts hit Halo Studios, other first-party studios, and the Xbox Game Studios management and central functions layer. Combined with July’s actions and studio divestitures, Xbox says it is roughly three-quarters through the previously announced restructuring. Activision will take on World’s Edge and Rare, and will develop the next Halo with a new purpose-built team separate from Call of Duty. A small team at Halo Studios will keep supporting the community and games already in market. Bethesda’s remit expands to Obsidian, which continues current projects including Grounded and a new Fallout collaboration with Bethesda Game Studios. King absorbs Microsoft Casual Games. Playground Games and Turn 10 Studios merge into one studio focused on Forza and Fable. On July’s divestitures: Compulsion and Double Fine returned to independent management in August with their IP and runway funding. Undead Labs has also transitioned and will release State of Decay 3 day one on Game Pass under a new publisher. Two sale agreements for Ninja Theory fell through; Xbox is starting employee consultation on a proposed closure while exploring other options. Arkane Lyon consultation continues through the end of 2026. Sources: https://news.xbox.com/en-us/2026/09/22/continuing-our-reset/ https://www.gematsu.com/2026/09/xbox-lays-off-268-employees-as-halo-rare-and-worlds-edge-move-to-activision-obsidian-entertainment-moves-to-betheseda-softworks-and-playground-games-and-turn-10-studios-merge Does moving Halo’s next game to Activision change how you feel about the franchise’s future?