Microsoft’s gaming division is in the middle of one of the most dramatic transformations in its history. According to a report by Kotaku, Xbox is now roughly 75 percent of the way through its planned restructure, a massive corporate reset that has seen the company condense its studios, lay off 268 employees, and enter a formal consultation period with Hellblade developer Ninja Theory. Perhaps the most shocking revelation of all? The future of Halo now rests in the hands of Activision.
The Scale of the Shake-Up: 268 Jobs Cut
The latest round of layoffs has impacted 268 workers across Xbox’s global operations. While Microsoft has endured several waves of job cuts since acquiring Activision Blizzard, this restructure feels different in scope and intent. Rather than trimming edges, Xbox appears to be fundamentally redrawing its internal map, merging and condensing studios into a leaner organization.
At 75 percent completion, the restructure is far from over, which means more changes — and potentially more difficult news — could still be on the horizon for Xbox employees and fans alike.
Halo’s New Home: Activision Takes the Reins
In a move few could have predicted, Microsoft has handed primary development duties for the Halo franchise to Activision. The publisher behind Call of Duty now carries the responsibility of steering gaming’s most iconic sci-fi series into its next era.
What Happens to 343 Industries?
343 Industries, the studio that has stewarded Halo since Bungie’s departure, hasn’t been fully dissolved — but its role has been dramatically reduced. A small support team will remain in place to maintain and support existing Halo titles, including Halo Infinite. For longtime fans, this marks the end of an era: the studio built specifically to carry Master Chief’s legacy is stepping back from leading the franchise forward.
Ninja Theory Enters Consultation
The report also confirms that Ninja Theory, the Cambridge-based studio behind the critically acclaimed Hellblade series and the recent Senua’s Saga: Hellblade II, has entered a consultation period. In UK employment law, consultation typically signals potential redundancies or significant operational changes, raising concerns about the studio’s future despite its strong creative output. It’s a sobering reminder that even critically praised studios aren’t immune to corporate restructuring.
What This Means for Xbox Going Forward
Zooming out, this restructure tells a larger story about Microsoft’s evolving strategy. Since the blockbuster Activision Blizzard acquisition, Xbox has shifted toward a multi-platform, content-first approach — bringing former exclusives to PlayStation and Nintendo, and betting big on Game Pass. Consolidating studios under fewer banners, and placing marquee franchises like Halo with proven hit-makers like Activision, suggests Xbox is prioritizing efficiency and proven commercial pipelines over traditional first-party identity.
For Halo fans, the Activision takeover is a double-edged sword. On one hand, the studio’s expertise in AAA shooters is undeniable. On the other, questions remain about whether the franchise’s identity will survive the transition intact.
The Human Cost of Corporate Strategy
Beyond the franchise shuffles and org charts, it’s important to remember the 268 people who lost their jobs — talented developers, artists, and support staff whose work brought countless gaming experiences to life. Industry-wide, layoffs have become painfully common, and Xbox’s reset is yet another chapter in a turbulent period for game developers everywhere.
As the restructure enters its final quarter, all eyes will be on what Xbox looks like when the dust settles — and whether this bold reset positions the brand for a stronger future or leaves it unrecognizable to the fans who built it.
While we wait to see what’s next for Halo and Xbox, you can still grab great deals on Xbox gift cards, Game Pass subscriptions, and game keys at TURGAME.com — your go-to store for digital game codes at the best prices.
Source: Kotaku