Xbox confirms 268 more layoffs, further studio closures, and Obsidian's shift to Bethesda as major restructuring continues

Microsoft has announced additional layoffs and restructuring at Xbox, as part of its ongoing major restructuring efforts. The company has confirmed 268 more job cuts, bringing the total to 3,468 employees affected. This follows Xbox CEO Asha Sharma's announcement in July of 3,200 layoffs, with 1,600 of those happening immediately.

Some first-party studios, such as Double Fine and Compulsion Games, were allowed to become independent again. However, with another 1,600 cuts looming, more job losses are on the horizon. Xbox executive vice president and chief content officer Matt Booty revealed that several studios have undergone reorganization, with some joining Activision, while others will work closely with Bethesda Game Studios.

Bethesda will oversee Obsidian, which is continuing its current projects, including Grounded. Additionally, the next Halo game will be developed by Activision, led by a new team separate from Call of Duty. Certain studios, such as Rare, Age of Empires/Mythology studio World's Edge, Playground, and Turn 10, will join forces to focus on Forza and Fable.

Despite these changes, Hellblade developer Ninja Theory and Arkane, known for Dishonored and Deathloop, face uncertain futures as consultation with employees continues. This latest news suggests that Microsoft is roughly three-quarters of the way through its previously announced restructuring, with over 1,300 employees still potentially facing layoffs.