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Xbox is laying off another 268 workers today, its chief content officer Matt Booty announced in an internal memo obtained by The Hollywood Reporter. The latest reductions are simply the next round in a broader mission to reduce the staff size by 3,200; Xbox is currently about three-quarters of the way through those cuts, first announced in July.
A number of studios have been affected by today’s news. Undead Labs (State of Decay 3 coming to Game Pass on day one) is being spun out to its own management; Bethesda is absorbing Obsidian (the studio making the new Fallout game); the King business (Candy Crush) is taking in Microsoft Casual Games (Solitaire, Minesweeper); Playground (the Forza: Horizon series) and Turn 10 (Forza Motorsport) will merge; and Ninja Theory is being shuttered.
And then there is the big consumer news of the day: Activision, the Call of Duty studio, will make the next Halo game, which THR is told will be a full-feature, mainline installment into the franchise. The Halo games have previously been made by franchise creator Bungie and later Halo Studios (FKA 343 Industries). Activision also makes Crash Bandicoot, Spyro the Dragon and the Tony Hawk Pro Skater games.
“We’re thrilled to welcome Halo, Rare, and World’s Edge to Activision. It’s an honor and a responsibility that we do not take lightly. These teams and their games have inspired fans around the world for decades,” Rob Kostich, the Activision president, said in a statement. “For Halo, our goal is clear: make the greatest Halo game ever, worthy of its universe and legacy, while staying true to what made players love it in the first place. It is a bold ambition, one that this franchise deserves. We have already begun assembling a purpose-built team, unique in capability and talent, ready and excited to deliver this next chapter with the community. To the World’s Edge and Rare teams, we can’t wait to get to work together.”
Read Booty’s note to staff below.
Team,
I’m writing to share several updates as part of the XBOX reset outlined earlier this year.
First, we are eliminating 268 roles across Halo Studios, other first-party studios, and the XGS management and central functions layer. The actions completed since July, inclusive of the studio divestitures, bring us roughly three-quarters of the way through previously announced restructuring. I am deeply grateful for what our colleagues have built, and I know how difficult today will be for those leaving and the teams around them.
Second, we are reorganizing our studios. The goal is to strengthen our franchises and games by operating fewer business units, aligning groups that already work closely together, and focusing our publishing expertise.
- Activision will expand its remit to World’s Edge, as well as Rare. Activision will also be developing the next Halo title, led by a new, purpose-built team that is separate from ongoing development and plans for Call of Duty. A small team at Halo Studios will continue supporting the Halo community and games in-market.
- Bethesda will expand its remit to include Obsidian, which will continue its current projects, including Grounded, as well as the new Fallout project made in collaboration with Bethesda Game Studios.
- King will expand its remit to include Microsoft Casual Games, uniting our two global leaders in casual game design and live operations.
- Playground and Turn 10 will come together as one studio focused on the Forza and Fable franchises. These two studios have been creative and franchise partners for over a decade, and today’s changes will formally move their work into one team.
Third, an update on our studio divestitures: In August, Compulsion and Double Fine returned to management with their IP, back catalogs, and runway funding. Undead Labs has now successfully transitioned on similar terms and, with a new publisher, will release State of Decay 3 day one on Game Pass. Unfortunately, two separate agreements for Ninja Theory fell through. We will now begin consultation with employees on a proposed closure while continuing to explore other paths forward. Consultation with Arkane remains underway and is expected to continue through the end of the year.
Today, our focus should be on supporting those affected and treating one another with care and respect. I will spend time with our studios over the next week. At our October 6 town hall, we will come together as an ALL-XBOX team to reflect on our progress and look ahead to one of the strongest game lineups in our history.
Matt
English (US) ·