Xbox Cuts 268 Roles, Reorganizes Studios in Continuing Reset

Xbox confirmed a new round of cuts and studio reorganization as part of the reset outlined earlier this year.

Xbox is eliminating 268 roles. In an official Xbox Wire post, EVP and Chief Content Officer Matt Booty said the cuts span Halo Studios, other first-party studios, and the XGS management and central functions layer. Inclusive of studio divestitures since July, Xbox says it is roughly three-quarters of the way through the previously announced 3,200-role restructuring.

Studios are being reorganized under fewer business units. Activision will expand its remit to World’s Edge and Rare, and will develop the next Halo title with a new purpose-built team separate from 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 continues current projects including Grounded and a new Fallout project with Bethesda Game Studios. King will oversee Microsoft Casual Games. Playground and Turn 10 will come together as one studio focused on Forza and Fable.

Divestiture update: Compulsion and Double Fine previously returned to management with IP and runway funding; Undead Labs has now transitioned on similar terms. Two separate agreements for Ninja Theory fell through, and Xbox is beginning consultation on a proposed closure while exploring other paths. Consultation with Arkane continues through year-end.

Earlier Pure Xbox / Insider Gaming reporting described a broader “hundreds this week” rumor wave; the concrete official figure is the 268 roles in Booty’s note.