Activision’s Halo Takeover: A Game-Changing Xbox Overhaul

XBOX Restructuring Updates: Streamlining Operations and Focusing on Franchises

Greetings Team,

I am reaching out to provide you with several important updates in line with the XBOX reset strategy announced earlier this year.

First and foremost, a total of 268 roles are being eliminated across various departments including Halo Studios, other first-party studios, and the XGS management and central functions layer. These actions, which have been ongoing since July, signify a significant step forward in the previously outlined restructuring plan. We acknowledge the hard work and dedication of our colleagues, and we understand the challenges that today’s transitions may bring for those departing and their respective teams.

In a bid to enhance our franchises and games, we are implementing a reorganization of our studios. This initiative aims to consolidate our business units, align closely collaborating groups, and concentrate on leveraging our publishing expertise.

Activision’s scope of operation will expand to include World’s Edge and Rare. Additionally, Activision will spearhead the development of the upcoming Halo title with a dedicated team separate from the current Call of Duty projects. A specialized team at Halo Studios will continue to support the existing Halo community and games.

Bethesda’s responsibilities will broaden to encompass Obsidian, which will continue its ongoing projects such as Grounded and collaborate on a new Fallout project with Bethesda Game Studios.

King’s mandate will be extended to include Microsoft Casual Games, uniting two global leaders in casual game design and live operations.

Playground and Turn 10 will merge as a single studio focusing on the Forza and Fable franchises. These two studios, with a longstanding partnership in technology, creativity, and franchise development, will now combine their efforts into a unified team.

Regarding the studio divestitures, Compulsion and Double Fine have regained control of their intellectual property, back catalogs, and funding. Undead Labs has successfully transitioned to a new publisher and will release State of Decay 3 on Game Pass. Unfortunately, negotiations for Ninja Theory fell through, leading to considerations for closure. Discussions with Arkane are ongoing and expected to continue through the year.

During this time, it is crucial that we support those affected by the changes and treat each other with compassion and respect. I will be connecting with our studios in the coming week. At our upcoming town hall on October 6, the entire XBOX team will convene to reflect on our progress and anticipate an exceptional lineup of games ahead.

Best regards,

Matt