Xbox is going through another major restructuring, and this time the changes include both layoffs and a significant shake-up of some of Microsoft’s biggest gaming studios. The company confirmed on September 22 that it is eliminating 268 roles across Halo Studios, other first-party studios, and Xbox Game Studios management and central functions. The changes are part of a wider restructuring announced earlier this year, which Xbox says is now roughly three-quarters complete.

The decision has naturally attracted criticism, particularly because it affects employees while Microsoft is also moving some major franchises and studios under different parts of its gaming business. However, Epic Games CEO Tim Sweeney has come out in support of the strategy behind the restructuring.

Restructuring gives Xbox “the best chance of success,” says Sweeney

Responding to criticism of Microsoft’s decision to place major projects under some of its more successful studios, Sweeney argued that putting strong-performing studios in charge of projects with significant potential gives those games a better opportunity to succeed. His comments came shortly after Microsoft revealed that Activision’s responsibilities would expand considerably under the new Xbox structure.

One of the biggest changes involves Halo. Microsoft says Activision will develop the next Halo game through a new team created specifically for the project, which will operate separately from its ongoing Call of Duty development. Halo Studios will remain around, but with a smaller team focused on supporting existing games and the Halo community. Activision will also expand its responsibilities to include Rare and World’s Edge.

Sweeney’s comments appear to support the broader idea behind this consolidation rather than the job losses themselves. Activision has extensive experience managing large-scale game development, particularly through the Call of Duty franchise, and Microsoft is now giving it responsibility for more of Xbox’s major properties.

The restructuring goes well beyond Activision and Halo. Bethesda will now oversee Obsidian, which will continue working on its current projects as well as a new Fallout game being developed alongside Bethesda Game Studios. King is taking responsibility for Microsoft Casual Games, while Playground Games and Turn 10 are being combined into a single studio focused on the Forza and Fable franchises.

About the Author

Abdul Haddi

Abdul is a tech writer and Editor for PC Guide, specializing in all things tech, gaming, and hardware.