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When Xbox announced sweeping layoffs in July as part of a brutal “reset” for the gaming brand, Xbox CEO Asha Sharma said part of the pre-existing problem in the gaming unit was “teams, studios, and functions [that] often operate independently, [making it] harder to work toward a shared goal.” Today, the company announced a radical restructuring of its internal studios that is seemingly designed to reduce that “independence” for the teams behind some of gaming’s biggest franchises. The biggest apparent change is for the Halo franchise, which will now be under the remit of Call of Duty maker Activision. Halo Studios (formerly 343 Industries), which recently released Halo: Campaign Evolved, will remain as just a “small team” to support the player community, Microsoft said, with the remaining staffing roles eliminated as part of 268 newly announced layoffs. “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,” Activision President Rob Kostich said in a statement provided to Kotaku. “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.” Activision, which Microsoft officially purchased just under three years ago, will now also take control of venerable studio Rare (Sea of Thieves) and the Age of Empires stewards at World’s Edge.
document fetched 2026-09-23 02:58 · canonical https://arstechnica.com/gaming/2026/09/shuffling-the-deck-chairs-xbox-continues-its-reset-with-dramatic-restructuring