On July 6, Xbox introduced an enormous overhaul of its enterprise. The modifications would see the corporate shedding hundreds of jobs because it regarded to chop 20% of its group over 12 months. That plan began with a handful of studios leaving the Xbox banner, whereas others confronted deep cuts. The second part of that operation rolled out on Sept. 22, and it noticed Xbox taking equally drastic measures. In a message shared to Staff Xbox staff, chief content material officer Matt Booty defined that Xbox was reducing a further 268 jobs because it continues to restructure its publishing efforts. Booty additionally revealed that Ninja Idea faces closure after struggling to discover a purchaser, whereas talks to dump Arkane are nonetheless ongoing.
There’s quite a lot of info to kind by way of. The transfer sees Xbox Sport Studios shrinking to the brink of non-existence, whereas Activision and Bethesda will shoulder extra duty as Xbox’s major publishers. Contemplating that Booty says that Xbox is simply three-quarters of its approach in direction of ending its restructuring course of, it is protected to say that Xbox will appear like a completely totally different firm subsequent 12 months than it did heading into 2026. This is the standing of each remaining Xbox studio, following each rounds of layoffs.
Activision
One factor that is been clear from Xbox’s restructuring to this point is that Activision is simply turning into extra integral to the enterprise. After being largely untouched by layoffs this summer time, Activision averted cuts for a second time. As a substitute, the writer is now inheriting World’s Edge and Uncommon below its banner. On high of that, Activision can be set to turn into the brand new residence for Halo. The studio is engaged on the collection’ subsequent sport, as Halo Studios has been nearly diminished to a small assist group in accordance with Sport File.
Blizzard
Blizzard is in the same boat with Activision. It continues to keep away from main cuts, as Xbox appears extra targeted on trimming down Xbox Sport Studios relatively than the opposite main publishers it owns. It is not too stunning for Blizzard: The studio simply got here off an announcement-filled Blizzcon. With new World of Warcraft, Diablo, and Starcraft video games coming, in addition to some multimedia IP offers, Blizzard is now positioned to turn into a workhorse for Xbox over the subsequent 4 years, when Starcraft is at the moment scheduled to launch.
King
One quiet change that got here out of this summer time’s layoffs was the truth that Sweet Crush developer King would start reporting on to then-new Xbox CEO Asha Sharma. So it is not too stunning that the studio is getting extra duty within the September shakeup. Microsoft Informal Video games will now be below King’s “remit,” consolidating a lesser-discussed a part of Microsoft’s gaming enterprise. Should you’ve by no means actually heard of Microsoft Informal Video games, it is the label that manages video games like Solitaire and Mahjong. With King now main the cost, anticipate Microsoft to double down on its informal cell choices.
Bethesda
It has been very up and down for Bethesda since Xbox’s relaxation started. This summer time, the writer’s studios had been hit laborious; Id Studios and ZeniMax On-line Studios each confronted important layoffs that impacted Doom and The Elder Scrolls On-line. On high of that, Xbox introduced that it was seeking to promote Arkane. Based on Booty’s September message, Xbox has but to safe a purchaser, however that course of will proceed by way of the top of 2026. This time round, Bethesda is getting extra obligations hoisted upon its shoulders. The writer will now handle Obsidian, which confronted job cuts this summer time. The transfer makes logical sense contemplating that Xbox has since confirmed that Obsidian is engaged on the subsequent Fallout sport as Bethesda itself continues to make the long-awaited Elder Scrolls 6.
Halo Studios
Maybe the largest information out of September’s Xbox layoffs is the modifications at Halo Studios. A great chunk of the 268 jobs Xbox reduce this time round got here from this group, with the remainder affecting “different first-party studios” and Xbox Sport Studios administration. That comes only a few brief months after the launch of Halo: Marketing campaign Advanced, which included a tease of a Halo 2 remake. Whereas the studio nonetheless exists, it appears as if it should operate as a assist studio for Activision because it creates its personal Halo sport. It is at the moment unclear how many individuals are left at Halo Studios and what precisely the remaining group will concentrate on.
The Coalition
The Coalition is without doubt one of the few studios remaining below the Xbox Sport Studios banner — for now, no less than. Contemplating that the Gears of Struggle studio is weeks away from transport its newest sport, Gears of Struggle: E-Day, it is smart that Xbox would not make any drastic modifications on the studio proper on the end line. The studio did not go completely unscathed, thoughts you; story director Juan Vaca was laid off as a part of the wave. With extra cuts looming, it definitely looks like The Coalition’s future will relaxation on E-Day‘s success. It is not laborious to think about the shooter collection, with or with out The Coalition, getting moved to Activision’s management down the road. However for now, The Coalition is constant on as regular.
Mojang Studios
Like King, Minecraft developer Mojang Studios started reporting on to Asha Sharma this summer time. And like King, the studio seems to be in a protected place as one of many few remaining builders below Xbox’s banner. Granted, it is unclear if the studio was topic to any cuts contemplating that Booty did word that some “first-party studios” had been impacted. There aren’t lots of these left, so it is potential that studios like Mojang and The Coalition had been topic to extra layoffs than have been reported to this point. Mojang Studio’s subsequent sport, Minecraft Dungeons 2, is ready to launch on Sept. 29.
Playground Video games and Flip 10 Studios
In one other little bit of consolidation, Xbox is bringing Playground Video games and Flip 10 Studios collectively. That transfer appears like a very long time coming contemplating that they each work on separate Forza franchises, and Flip 10 was considerably impacted by layoffs in 2025. The transfer continues to sign that Forza is a significant precedence for Microsoft, which is not too stunning provided that Forza Horizon 6 has been certainly one of Xbox’s few true success tales lately.
Obsidian
Whereas Obsidian will now report back to Bethesda, it does not appear that an excessive amount of is altering on the studio past its reporting construction as of now. In a leaked memo despatched out to Bethesda employees, Bethesda president Jill Braff harassed that Obsidian would nonetheless retain its “artistic id” within the transition, whilst CEO Feargus Urquheart begins reporting on to Braff. Along with creating a brand new Fallout sport, will proceed its work on Grounded collection, in accordance with Booty’s memo.
Uncommon
Uncommon’s future stays considerably of a thriller, as it’s transferring below Activision. What precisely the group is engaged on other than Sea of Thieves is anybody’s guess, contemplating that Everwild is off the desk. Uncommon suffered layoffs again in 2025 as a part of Everwild‘s cancellation, so it is already working in a smaller kind. Contemplating that Xbox is squarely targeted on IP proper now, it is definitely not unattainable that Xbox may very well be eyeing Uncommon’s dormant Banjo-Kazooie IP for a revival, however all we’ve is theory at this stage.