Microsoft is cutting 268 roles across Halo Studios, other Xbox first-party studios and central Xbox management, saying its restructuring is now roughly three-quarters complete.
Activision will take oversight of Rare and World’s Edge, and a new Activision team will develop the next Halo game.
A smaller Halo Studios team will remain to support existing Halo titles and the community.
Bethesda will take oversight of Obsidian, which will continue its existing projects and is also working with Bethesda Game Studios on a new Fallout project.
King will take over Microsoft Casual Games.
Playground Games and Turn 10 will be combined into a single studio responsible for the Forza and Fable franchises.
Microsoft says two potential deals for Ninja Theory fell through and it is now consulting staff on a proposed closure, while discussions around Arkane are expected to continue through the end of 2026