Xbox cutting 268 jobs amid widespread unit consolidation

Microsoft's Xbox division is set to cut 268 jobs as part of a wider consolidation effort, according to a recent announcement. The company intends to bring several of its studios under the Activision banner, which is known for games like Call of Duty and classic titles such as Crash Bandicoot and Spyro the Dragon. Other studios, including Rare and the maker of the Age of Empires series, World's Edge, will be overseen by Activision as well.

Activision, purchased by Microsoft in 2023 for $69 billion, will also lead the development of the next Halo game. The layoffs are expected to affect employees at Halo Studios, which will continue to support current Halo games and maintain a smaller community-focused team. Bethesda, responsible for popular titles Fallout and Elder Scrolls, will expand to include Obsidian and will continue working on the latter's ongoing projects.

King, known for Candy Crush, will now include Microsoft Casual Games and Playground, while Turn 10 will merge with another studio to focus on Forza and Fable. In a statement, Xbox's chief content officer, Matt Booty, expressed gratitude for the work done by the affected colleagues and emphasized the need to support those leaving and those around them.

He stated that the reorganisation aims to strengthen franchises and games by operating fewer business units, aligning groups that work closely together, and focusing publishing expertise. Booty also mentioned that the company is halfway through its previously announced restructuring efforts, which include studio divestitures and a broader restructuring since July.