Xbox announced another major shift in the brand’s structure, including more layoffs and significant consolidation within its remaining web of studios which follows months of setting developers lose to find independence or other means of survival. This time, there are some pretty stunning announcements.

  • The biggest news is that Activision will now develop the next mainline Halo game, not Halo Studios. As for what that means for Halo Studios, you may be able to guess as 268 roles are being cut within that developer. Some will remain to support “the Halo community and games in-market.” The Activision Halo team is new and separated out from Call of Duty development. Activision will now also have World’s Edge and Rare under its umbrella.
  • Obsidian, now tasked with a new Fallout game, will now be under Bethesda’s purview, and the two will collaborate on that game. Obsidian will continue to run Grounded . Still no word on when Elder Scrolls VI may arrive.
  • Microsoft Casual Games (which I have genuinely never heard of) is now under King, Xbox’s mobile arm it acquired as part of the Activision Blizzard deal.
  • Playground and Turn 10 are becoming a single studio that focuses on the Forza and Fable IPs, indicating that more Fable is to follow after next year’s release. They are praised as hugely important and talented studios.
  • Undead Labs will still release State of Decay 3 day one on Game Pass with a new publisher.
  • Ninja Theory was not able to be sold, and it may now be closed.
  • Arkane is still in negotiations, and there are no updates to share until possibly the end of the year.

Here’s what Activision said about the big news, as it is now far and away the most important studio at Xbox:

“We’re thrilled to welcome Halo , Rare, and World’s Edge to Activision. It’s an honor and a responsibility that we do not take lightly.  These teams and their games have inspired fans around the world for decades.

“For Halo , our goal is clear: make the greatest Halo game ever, worthy of its universe and legacy, while staying true to what made players love it in the first place.  It is a bold ambition, one that this franchise deserves. We have already begun assembling a purpose-built team, unique in capability and talent, ready and excited to deliver this next chapter with the community. To the World’s Edge and Rare teams, we can’t wait to get to work together.”

This may be the biggest move the Asha Sharma administration has made thus far, and while more layoffs are unfortunate, the general position of the Halo community may be one of relief, as many believe that the series has not thrived under 343/Halo Studios’ leadership for several games now. Though there is equal skepticism about Activision taking over as well.

A key point, however, is that if this change is only now happening, we are likely many, many years away from a new mainline Halo game, and we are already five years past the last one.

Xbox continues to rebuild itself by painfully breaking bones every few months. It has an endless amount of challenges ahead, and we will see what may come of this latest large-scale move.

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