Xbox changes: Activision takes over Halo, Obsidian to work alongside Bethesda, Ninja Theory to close

Microsoft confirms layoffs and big organizational changes at Xbox, where divisions like Bethesda and Obsidian will work together to make games.

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It's official: Xbox is changing, and today's announcement is a big one. Xbox's Matt Booty outlined what's next, confirming structural and personnel changes. Xbox will lay off 268 people across first-party studios--Halo Studios was mentioned directly--as well as other management groups.

Now on to the paradigm shifts. Activision will develop the next Halo game, and it will not be responsible for, and be an authority over, Rare and World's Edge. Bethesda will do the same for Obsidian (the two teams are currently collaborating on a new Fallout project). Turn10 and Playground Games are joining forces, coming together as one studio. King now includes Microsoft Casual Games.

The Xbox exec also confirms that Ninja Theory, the team behind the Senua games, is shutting down.

"The goal is to strengthen our franchises and games by operating fewer business units, aligning groups that already work closely together, and focusing our publishing expertise.

"The actions completed since July, inclusive of the studio divestitures, bring us roughly three-quarters of the way through previously announced restructuring."

It's unclear whether or not Halo Campaign Evolved's release lived up to Xbox's internal expectations; this was the first-ever Halo game released on PlayStation, but ultimately the move may have been decades too late as the games industry has moved on to other games since then.

Frequently Asked Questions

Open a question for an answer from TweakTown's coverage of this news, or ask your own below.

Question #1

Why is Activision being assigned to develop the next Halo game?

Activision is being put on the next Halo game as part of Xbox's broader restructuring. Matt Booty said the goal is to strengthen franchises by operating fewer business units, aligning groups that already work closely together, and focusing publishing expertise.

Question #2

What does Bethesda working alongside Obsidian mean for the new Fallout project?

It means Bethesda and Obsidian are collaborating on the new Fallout project rather than working separately. The story does not spell out each studio's exact role, only that they are working together on the game. A separate piece titled Obsidian to make a new Fallout game led by New Vegas director says the project will be led by Josh Sawyer.

Question #3

How will combining Turn10 and Playground Games change their next racing games?

Turn10 and Playground Games are being joined together as one studio, but no specific change to their next racing games was explained. The stated goal is to strengthen franchises by operating fewer business units and aligning groups that already work closely together.

Question #4

What does it mean that King now includes Microsoft Casual Games?

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Microsoft is currently gearing up for its next-generation Project Helix console while also trying to push down costs and raise monetization potential, including ad-supported cloud gaming options. These layoffs and restructurings come at a time when procuring chips is proving to be difficult and expensive, and companies are expecting to pay much higher prices than usual to attain them.