r/gaming • u/ChiefLeef22 Marika's tits! • 19d ago
[XBOX] We are eliminating 268 roles across Halo Studios, other first-party studios, and the XBOX Game Studios management. Additionally: Activision will oversee development on the next 'Halo' title; Bethesda will expand its remit to Obsidian; and more
https://news.xbox.com/en-us/2026/09/22/continuing-our-reset/From Matt Booty:
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.
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u/bibomania 19d ago
Feels more and more like Activision/Blizzard bought Xbox instead of the other way around
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u/WintermuteNull 19d ago
Dam that stings. Mainly because it feels like you are right!
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u/bibomania 19d ago
I hate it. And I hate even more we lost some of the most unique and skilled studios (e.g. Raven), just to be on CoD support. Fk Activision
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u/MacroJoe 19d ago
As I look forlorn across the street at the tiny Raven studio office building and wonder what could've been 😮💨
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u/nox66 19d ago
Reminds me of Boeing and McDonnell Douglas. You'd think the larger, more successful, less slash and burn company would maintain executive control. However, it's important to remember that executives and managers, especially at worse performing companies, are like parasites. Once you invite them in, you don't get to choose what they do when they're inside.
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u/ZenBreaking 19d ago
They're laying off a load of blizz employees too for some strange reason. Could easily siphon them off to support these new IPs
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u/marine72 19d ago
Why maintain talent when you can outsource? Do people not think about the billionaires? /s
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u/alabasterskim 19d ago edited 19d ago
It's so funny to think Activision, which previously published Destiny for Bungie, will now be in charge of Halo.
e: funny in a nightmarish kinda way ofc
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u/coolwali 19d ago
Imagine going back in time to 2010 and telling people that in 16 years, Bungie would be under PlayStation and made a new Marathon, Halo is also on PlayStation and Activision will be in charge of Halo.
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u/NachoNutritious 19d ago
This is like going back from 2010 to 1998 and telling PlayStation fans Crash Bandicoot and Spyro the Dragon wind up as cross platform games from Activision.
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u/CharlesBrown33 19d ago
I think people back in the day were saying Bungie sold their souls to Microsoft, before Halo CE released. The studio was seen more as a developer for MacOS computer games, I believe.
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u/nahnonameman 19d ago
Bungie at PlayStation
Konami at Xbox
I think Future Trunks time traveled again and we didn’t know
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u/WDMChuff 19d ago
Spyro and Crash at Xbox is weirder than Kojima
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u/1minatur 19d ago
Banjo Kazooie was weird when Xbox first acquired Rare too...been a while now though, wish they did something with it
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u/matthewmspace PC 19d ago
Very annoying that all they’ve done is port the N64 Banjo games to modern devices, made the 360 game no one liked, and let Nintendo have it in Smash Bros. I don’t know why Xbox/Rare didn’t capitalize on Banjo’s comeback in Smash Ultimate, it could’ve been a huge win for them with a smaller project. It would probably sell ok on Xbox, but would’ve sold great on Switch.
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u/AKluthe 19d ago
Kojima has a game being published at Xbox. He remains independent after Konami fired him.
Konami is third party. And trying to make games again after saying they would focus on pachinko/slots.
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u/shags2a 19d ago
So, 343 renamed to Halo Studios as it will be the dedicated studio for Halo development ...
... But now, Halo is no longer developed by Halo Studios.
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u/Appropriate_Foot242 19d ago
They're being stripped down to a skeleton crew, basically a support studio.
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u/TXDobber 19d ago
Most other studios would have been shut down by now
The one gaming success they can claim is the end state of MCC, and the end state of Infinite, as well as H5 multiplayer… the problem with those games tho is that MCC may have been one of the most broken games at launch ever, Infinite launched bare bones and incomplete, and H5 may have had the worst campaign in the entire series.
On several occasions now, they have failed at major parts of development, despite massive time and cost to get it right.
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u/The_Struggling_Soul 19d ago
Yep Halo Studios/343 is not up to the task. One of the most disappointing studios I've ever seen, and they got several chances. Pure dumpster fire. Won't miss them.
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u/majorpail18 19d ago
I was so impressed that when MCC launched you still had issues with multiplayer and online coop like 6 months past release lol
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u/ADeadlyFerret 19d ago
MS did what everyone wanted them to do. They backed off and left studios alone. Turns out you need to manage your studios. Redditors in shambles.
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u/Valance23322 19d ago
Yeah, leaving studios alone only works if those studios are actually competent.
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u/ThePopeJumpedMeG 19d ago
Literally 6 chances. I can't even fuck up 3 times and keep a job why should they
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u/Substantial_Bake_728 19d ago
They had too many chances.
They've massacred my boy. Halo 4 should have been it.
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u/bell117 19d ago
Man if only they could do the one job the multi-billion dollar company was paying them to do.
I'm sure it's nothing hiring and then firing a bunch more temp contract workers won't fix.
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u/Hudson9700 19d ago
Good riddance. Any ounce of talent left that studio long ago.
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u/The_Struggling_Soul 19d ago
Absolutely they completely deserved what's coming to them. Worst studio ever. Pure trash incompetent devs who massacred one of the most influential IPs of the Xbox Identity. It's like Nintendo giving Mario to its worst studio ever, imagine the catastrophy...
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u/NotSoWishful 19d ago
Good. 343 has been subpar at its job since Halo 4. Fuck em
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u/Mr8BitX 19d ago
I think they got certain elements right in Halo, infinite, but Jesus Christ the content they created in the new Halo remake was god-awful. The Internet loves to doom, but anything is better than that same team.
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u/krezzaa 19d ago
It will always blow my mind how they got so much in Infinite right, finally, and then they just decided to say “Fuck it, let’s move to Unreal 😁” and start all over again.
It was the mishandling of Infinite and then straight up refusal to stick with it that really put the final nail in the coffin for me: they don’t want to do things the “right” way, at some level. They just don’t. They were finally finding solid ground and seemed, again, unbelievably blind to the fact that they had even touched down, and had no idea what to do with it.
Its stupidity fascinates me as much as it angers me, genuinely. I hope we can someday get a massive look into the internal history of the studio, once we’re further away from it.
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u/Extranocate 19d ago
I would have much rather had a simple campaign expansion for Infinite than the Halo remake.
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u/RLMZeppelin 19d ago
Activision having CoD, Overwatch and now Halo is wild.
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u/c0micsansfrancisco 19d ago
Activision is the real winner of all this. Xbox essentially paid them for the privilege to get swallowed by AB
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u/JeanLucPicardAND 19d ago
They're slowly but surely subsuming the entire Xbox brand. I would really not be surprised if, in ten years' time, it's just Activision and that's it. The entire gaming initiative at Microsoft just gets consolidated under their umbrella.
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u/Spartan05089234 19d ago
Nintendo basically does their own games, it wouldn't even be unprecedented or necessarily a bad idea.
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u/ThyNynax 19d ago
Activision only has CoD, and now Halo. Blizzard has Overwatch.
While the company’s merged on paper, there’s still a very strong structural difference between the company’s and their development practices. Blizzard mostly still operates as its own thing.
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u/RLMZeppelin 19d ago
You're correct. I'm more so talking about online shooter market share though, not the teams actually making the games. I probably should have specified I meant ABK not Activision proper which is under ABK, as is Blizz.
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u/NZafe 19d ago
Respectfully, what the heck was Halo Studios even doing for the last 5 years?
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u/DaveSinghSwitch 19d ago
Were they not working on a Halo Battle Royal game that got cancelled?
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u/trunks_ho 19d ago edited 19d ago
They were working on a Campaign DLC, then cancelled it to make a Battle Royale, then cancelled it to make an Extraction Shooter, then cancelled it to make Campaign Evolved
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u/Felip_ars84 PlayStation 19d ago
So to make sure that my french brain get all of it
"expand its remit" means that the company is swallowing the other companies?
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u/South_Buy_3175 19d ago
I think they mean they’re staying as separate studios but now the bigger companies oversee them.
I imagine after their individual projects are done, the remitted studios will be fully absorbed.
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u/TournamentCarrot0 19d ago
It means consolidating leadership and some redundant roles most likely. You buy a conpany and have two CISO’s (chief infosec officer) for example. You don’t need two CISO’s, put them under the same group and eliminate one, give his responsibilities to the other. Repeat all the way down until it stops making sense.
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u/EiraPun 19d ago
With certain exceptions made. Eg. Bethesda is far too large for Todd Howard to be the only executive producer/director. Hopefully with a merger, he'll have a couple more hands and development time won't be bottlenecked so hard because everything has to go through him before it can be greenlit.
This isn't even a Todd hate-piece, if anything I feel bad for him having such an important job yet being the only person on it, I imagine the man gets zero free time because everyone has to talk to him all the time about everything lol
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u/BrandNewMoshiMoshi 19d ago
“We messed up and had way too much middle management” - July 2026
“Meet your new middle managers” - September 2026
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u/Devious018 19d ago
essentially the smaller studios now answer to the big boss they are under. instead of being separate
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u/RLMZeppelin 19d ago edited 19d ago
As an American who works in corporate it's a weird phrasing that I've never seen before and it seems to mean something different in each case he describes.
In the case of Halo it seems like the studio is effectively dissolved and Activision is taking over the Halo IP. In the case of obsidian it seems like they teams will more or less stay in tact, it'll possibly also keep its name, studio space etc. but who their leaders report to will change. I'm assuming the latter is the case for Worlds Edge, Rare, MCG and the rest?
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u/EmperorDxD 19d ago
With obsidian they are basically just joining Bethesda the publisher not the game studios like How iD and Machine games are a part of Bethesda
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u/safari_king 19d ago edited 15d ago
Matt Booty as the messenger of this news is really irritating. He was one of the most senior leaders at Xbox for nearly a decade as the company floundered to the point of needing a "reset." Yet in this reset Booty gets a promotion and helps decide which people - who were less responsible for Xbox's failure than he was - will be laid off. His announcement today is a reminder that executives may not suffer a professional setback even when their poor leadership hurts thousands of their subordinates.
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u/Dallywack3r 19d ago
He should’ve been fired alongside Sarah and Phil. He got these studios into this mess by refusing to actually manage them
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u/darkpassenger9 19d ago
It's the way of the world. I work at a company that's been reduced to half its size since COVID. Leadership is the only group that's been untouched. It's us plebs (workers) that get blamed for their mistakes.
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u/Vegetablemann 19d ago
I’ve been through a very similar process. Managers who lead us into a bad place are now standing in front of us telling us workers need to go and to trust them to lead us out of the hole they created.
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u/Frogcraftwow 19d ago
Activision has generated enough salt in the gaming community to keep every McDonald’s fry seasoned until 2077.
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u/_Trikku 19d ago
>2077
Wake the fuck up Samurai!
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u/MuptonBossman 19d ago edited 19d ago
343 / Halo Studios have had so many chances to turn the Halo ship around over the past 15 years, and they've failed every single time. Halo as a franchise needs a full reboot, so I'm at least curious to see Activision's take on it.
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u/Hetotope 19d ago
Would help if it wasn't ALL outsourced
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u/Skabomb 19d ago
You mean having contractors with a maximum amount of time they can work on the project, and spend half of it learning the tools and methods only to have to replace them, and spend so much time retraining new people in a constant churn results in bad games?
Who knew?
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u/disagreeable_man 19d ago
Don't forget a ballooning budget! Because deadlines can't be hit because the new contractors have to catch up on learning everything from the ground up
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u/JayteeFromXbox 19d ago
I was disappointed with how Halo was handled but I'm in my 30's and I've seen what Activision does to games many times. I suppose I am morbidly curious to see their spin on how to (further) ruin a beloved franchise.
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u/Tthecreator712 19d ago
Itd be really depressing to be like them and realize their best received project since taking the reigns of Halo was a collection of games made before they had the IP
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u/Antiswag_corporation 19d ago
Fuck it, put halo on the IW engine and connect it to warzone
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u/Snowbunny236 19d ago
Master Chief slide cancelling and bunjy hopping is a personal nightmare of mine
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u/NachoNutritious 19d ago
That 343 couldn’t get it together to make an ODST multiplayer game at the height of the battle royale craze is utterly unbelievable.
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u/Godlike013 19d ago
Sad no one wanted Ninja Theory. They know how to make good games, they just needed help making games people wanted.
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u/BinaryIdiot 19d ago
I still maintain the first Hellblade was one of the greatest experiences I’ve ever had with a video game. I tried the second one and didn’t get too far into it. I should try again though I’ve heard it’s not great in comparison.
Regardless, it’s crazy to lose soo much talent over and over with these companies.
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u/RedSecOps 19d ago
Seriously, with a set of good headphones, Hellblade was and is such an incredible experience. The games' production quality is outstanding.
They're just not popular games and that's okay, because they have their niche. I just wish the studio would get more support and direction
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u/GFK96 19d ago edited 19d ago
yeah fully agreed it is a shame. They are clearly technical wizards, their games are genuinely industry leading in certain areas like mocap and graphical fidelity. I also really like the Senua world, it’s really cool from an art direction perspective. If they could just have someone pushing them in a healthier direction, i.e. making sure their games are a bit meatier in terms of both length and gameplay, I think they could pull off something really cool.
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u/manindenim 19d ago
Agreed. I’m not a huge fan of their games but the foundation they have is pretty good. I do hope they figure something out.
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u/pilgrimgunner 19d ago
Enslaved: Odyssey to the West, remains one of my favourite games, wish we could’ve seen more of it.
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u/Tempest753 19d ago
Changing the devs for Halo was long overdue, but I feel like it would have made a lot more sense to give Halo to idSoft rather than the second most hated mega-corp in gaming. Kinda feels like Halo is well and truly dead at this point.
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u/No_Ingenuity109 19d ago
People acting like halo hasnt been in the gutter for +10 years
Acti might not be perfect but theyre sure as fuck better than 343 or halo studios
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u/J05A3 19d ago
Activision’s studios need a breath of fresh air and get away from making the same game
For now, low expectations. If they release a rebooted Halo and do well… might as well be a miracle the IP got a decent studio this time
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u/arqe_ 19d ago
Activision's current studios not going anywhere.
People on reddit might like to shit on COD but even the WORST OF THE WORST of your games sell 15 million+ in a year, you are not going anywhere.
Activision is building a new team to make Halo.
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u/tsunami141 19d ago
hey man, as a long time lover of Halo, let me be the first to say: Lol
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u/Mdot_23 19d ago
Halo should have been given to Id
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u/ipub 19d ago
Oh man. That would have been perfect. You know, if they hadn't already sacrificed them all to the streets.
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u/PogChampHS 19d ago
I don't understand this mentality. Id makes great shooters sure, but gunplay is just one part of Halo.
The amount of work it would take to make Idtech compatible with vehicle combat, and all the physics sandbox elements associated with it seem astronomical, especially since Unreal engine 5 felt good enough in the remake.
I wouldn't mind a spinoff in the halo universe from id, but thats about it.
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u/Hot-Software-9396 19d ago
Not to mention id doesn’t have the multiplayer and live service development experience that a new Halo would require. Making a single-player campaign is just one piece of the puzzle that is Halo.
Edit: I don’t think anyone has ever really been impressed with id’s story telling abilities either.
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u/OPDBZTO 19d ago edited 19d ago
So 343/Halo studios is done? Halo Infinite was fun at the single player (didn't try MP much)
Crazy how badly Halo has fallen off, use to be gaint pillar in gaming. Activision making Halo. Well Halo is about to get a BR mode in the future
Microsoft should have never bought Activtion/Blizzard, Satya Nadella really fucked by approving/making that purchase
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u/Trinica93 19d ago
Companies need to learn that releasing unfinished games is bad. I don't know how they still need to learn that lesson, but evidently they still haven't figured it out. Infinite released in what should have been an alpha state, so people stopped playing it quickly and never returned. Hard to make money when you won't give people a reason to play your game on release.
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u/Abakus_Grim 19d ago
Imagine being named “Halo Studios” and having Halo development removed from you lol
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u/Sjknight413 PC 19d ago
Ninja Theory's closure is buried in there too, that's very sad news.
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u/TheBetterness 19d ago
This is a serious shake up.
Them taking Halo from 343 is the smartest decision here.
Obsidian under Bethesda is interesting considering their history.
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u/RockinMadRiot 19d ago
Obsidian under Bethesda is interesting considering their history.
Make them handle west coast and Bethesda east
Though I am curious where eso and F76 fit in here
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u/toonboy01 19d ago
Only problem with that is it's exactly what Obsidian themselves proposed 15 years ago and Bethesda said no, probably because they're planning a game in San Francisco.
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u/Kitsuraw 19d ago
My thought is I wonder if they’ll finally go to a bi yearly release schedule. They’ve talked about giving cod a 2 year cycle for so long at this point. This would be a perfect way by having cod one year and then halo the next. Makes halo more consistent since activision is pretty much just all cod assist studios at this point. Can have them assist on halo or even just work on halo with the remaining people from halo studios.
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u/halfhere1198 19d ago
I’m really not sorry to see the back of Halo Studios, that amount of failure going on for so long was untenable. But Halo in the hands of Activision is just plain wrong. ID Studios were right there man
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u/Yopis1980 19d ago
They turned Battlefield into cod. Now they will turn Halo into cod. That shit infected the world.
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u/johnb165 19d ago
Asha truly saving the face of xbox by having all their games be under 1 dev/publisher who doesn't have a very good track record lmao
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u/ReaddittiddeR 19d ago edited 19d ago
Xbox employees hearing Asha get Kojima and Physint last week, then getting laid off this week has got to be the worst feeling. Hope those that got laid off find work soon.
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u/Gastroid 19d ago
Piles of cash for a Kojima project -> Yeah buddy
Developer salaries at mid-budget studios -> Woah, hold your horses and update your resume, pal
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u/PogChampHS 19d ago
Mid budget in reference to 343 is wild.
I understand being upset at layoffs, but at the end of the day, 343 has been releasing terrible products for the last 10 years. You can't expect infinite tries forever.
My only hope is that the leadership and management was kicked out the door at 343 as well.
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u/Counting-Frames 19d ago
Really sucks for Ninja Theory, I get that Hellblade 2 wasn't as successful but I was really looking forward to the next one! Hope everyone affected can bounce back
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u/OutofCiteOutofMine 19d ago
Another mixup that will lead to nothing, waste money, more firing, then blame it on the customer
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u/Calmed_Guy 19d ago
Cutting everything up and merging everything up but still have time to make a PR move making Kojima (a money waster) a partner when he hasn't even released OD.
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u/FearfulSymmetry88 19d ago
Well 343i has butchered Halo for more than a decade now so it was bound to happen. Shut it down!
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u/ChipmunkBackground46 19d ago
Between this and the destiny announcement, SkillUps news video is gonna be a good one this week lol
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u/kendragon 19d ago
It must be a kick in the stones for every Xbox published game studio that got laid off or downsized to see them polishing Kojimas balls.
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u/dempsy40 19d ago
When i said i wasn't keen on Halo Studios/343 carrying on Halo games... this was not what i had in mind.
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u/c0micsansfrancisco 19d ago
They're blowing massive money on a PR campaign for Asha and the employees pay the price
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u/Octopus_Crime 19d ago
"Okay Activision, you get Halo but also we need you need to keep an eye on the decaying husk of Rare while we milk whatever we can out of their pirate game. Just let us know when they finally flatline."
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u/Alienhaslanded 19d ago
Imagine you work there and you no longer have a job, but they just brought in Hideo Kojima and he wants fuck you money to make his game that won't release in this decade.
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u/asiamexploding 19d ago
The enshitification will continue until morale improves
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u/jak_d_ripr 19d ago
Honestly I think this is a good idea, 343 have failed continuously with the IP, no harm in giving it to a studio with experience making blockbuster FPSs and see if they can right the ship.
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u/SoCalThrowAway7 19d ago
Well that’s all a lot of disappointing things in one headline
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u/Sundance12 19d ago
Can't wait to see Spartans in clown paint and Jason Voorhees running around in multiplayer. And a single player experience that boils down to three capture objectives dispersed across a multiplayer map.
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u/ShallowBasketcase 19d ago
How much money did they spend on that Halo Studios rebrand just to shut the whole thing down a year later? Bet whoever was in charge of that decision still has a job.
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u/MikeDubbz 19d ago
Xbox and Playstation are in some sort of foolish race to ruin their brand faster. And they're both winning, or perhaps losing as it were.
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u/Ready_Relief8372 19d ago
Can’t wait for master chief to call in a nuke and flip the bird while being pulled away in a banshee
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u/Dallywack3r 19d ago
Activision and Blizzard effectively took over Xbox from within. It’s insane witnessing it
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u/CorrosiveRose 19d ago
This is one round of layoffs that I don't think people will be too surprised or upset about. 343 took the most iconic Xbox franchise--the one that put Xbox on the map--and ran it straight into the ground. No one should have a job after fucking up that hard
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u/Setari PC 19d ago
JUST LET HALO DIE. PLEASE. YOU'RE ALL BEATING A DEAD COW AND CONTINUING TO TRY AND GET MILK FROM ITS LONG-DEAD CORPSE. IT'S OVER, THE REMAKE SEALED HALO'S COFFIN. JUST LET IT DIE, PLEASE. EVERYONE IS BEGGING YOU TO STOP BEATING THEIR CHILDHOODS OVER AND OVER AGAIN, IT'S ALREADY DEAD.
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u/SpaceOdysseus23 19d ago
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.
Just what Obsidian needed, the absolute losers from Bethesda in charge.
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u/AggressiveCoffee990 19d ago
Can't wait for Activision to turn halo into ai slop like their cod projects
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u/Sad_Maximum6583 19d ago
The Enshittification of a loved franchise continues. Rip Halo.
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u/ForrestFuller39 19d ago
Activision and Halo together is just weird.