Gaming Giant Xbox Shakes Up Industry: Layoffs Continue, Halo Development Shifts to Activision
Xbox has announced further layoffs, affecting 268 workers, as part of a larger strategic reorganization impacting 3,200 positions across its gaming division. This overhaul includes significant changes for prominent studios like Ninja Theory, Double Fine, and Undead Labs, alongside other key realignments within Microsoft's extensive gaming portfolio.
In a significant development impacting the gaming industry, Xbox has reportedly laid off an additional 268 workers on Tuesday, furthering its extensive plan to eliminate a total of 3,200 positions as part of a major company-wide reorganization. The announcement, confirmed by an internal memo from Xbox chief content officer Matt Booty, as reported by The Hollywood Reporter, details a series of profound shifts affecting several key game development studios under Microsoft's gaming division.
Among the most striking changes, Xbox is currently in discussions with Ninja Theory, the acclaimed studio known for its work on "Hellblade," regarding a "proposed closure." This potential shuttering has raised considerable concern and, according to IGN, puts the future of Ninja Theory's iconic character, Senua, "in doubt."
Other prominent studios are also undergoing significant transformations. Double Fine, celebrated for titles such as "Psychonauts," and Compulsion, the creators of "South Of Midnight," are slated to transition to independent management. Similarly, Undead Labs, the studio behind the popular "State of Decay" series, is expected to launch its forthcoming title, "State of Decay 3," on Game Pass, but crucially, under new ownership, indicating a clear change in its operational structure.
Strategic realignments extend to other parts of the Xbox ecosystem. Bethesda will assume oversight of Obsidian, a move that coincides with the ongoing development of a new "Fallout" game. In the realm of casual gaming, King, the powerhouse responsible for the globally successful "Candy Crush" franchise, is set to absorb Microsoft Casual Games, which includes beloved classics like "Solitaire" and "Minesweeper." Furthermore, a notable consolidation will see Playground, the studio behind the critically acclaimed "Forza Horizon" series, merge with Turn 10, the developers of "Forza Motorsport," streamlining the company's efforts within the racing game genre.
These comprehensive layoffs and structural reconfigurations underscore a broad effort by Xbox to streamline operations and reconfigure its vast network of studios, reflecting a period of significant strategic adjustment within the company's expansive gaming portfolio.