{"id":1698606,"date":"2026-09-22T15:05:28","date_gmt":"2026-09-22T15:05:28","guid":{"rendered":"http:\/\/wBSquqFzz5TxpPUf46LsZZ"},"modified":"2026-09-22T15:05:28","modified_gmt":"2026-09-22T15:05:28","slug":"xbox-lays-off-268-more-employees-merges-obsidian-into-bethesda-and-puts-activision-in-charge-of-halo","status":"publish","type":"post","link":"https:\/\/arcader.org\/news\/xbox-lays-off-268-more-employees-merges-obsidian-into-bethesda-and-puts-activision-in-charge-of-halo\/","title":{"rendered":"Xbox lays off 268 more employees, merges Obsidian into Bethesda, and puts Activision in charge of Halo"},"content":{"rendered":"<article>\n<h2 id=\"what-happened\">What happened<\/h2>\n<ul>\n<li>Xbox executive vice president and chief content officer Matt Booty has <a href=\"https:\/\/news.xbox.com\/en-us\/2026\/09\/22\/continuing-our-reset\/\" target=\"_blank\"><strong>announced another round of layoffs<\/strong><\/a><strong> and studio reorganizations<\/strong> as part of the continuing &#8220;reset&#8221; of Microsoft&#8217;s gaming division<\/li>\n<li><strong>Xbox has cut an additional 268 employees<\/strong> &#8220;across Halo Studios, other first-party studios, and the XGS management and central functions layer,&#8221; which Booty says brings the company &#8220;roughly three-quarters of the way&#8221; to completing its downsizing plan that <a href=\"https:\/\/www.pcgamer.com\/gaming-industry\/xbox-is-laying-off-3-200-people-and-dumping-4-studios\/\" target=\"_blank\">previously put 1,600 people out of work<\/a> in June<\/li>\n<li><strong>Activision is now developing the next Halo game<\/strong> with &#8220;a new, purpose-built team,&#8221; and will also oversee Rare and Age of Empires developer World&#8217;s Edge<\/li>\n<li><strong>Obsidian will be folded into Bethesda<\/strong>, and will continue its current projects like Grounded and the previously-announced &#8220;new Fallout project made in collaboration with Bethesda Game Studios&#8221;<\/li>\n<li><strong>Playground and Turn 10 will be &#8220;formally&#8221; merged into one studio<\/strong> after being &#8220;creative and franchise partners for over a decade&#8221;<\/li>\n<li>Candy Crush developer King will be &#8220;uniting&#8221; with Microsoft Casual Games<\/li>\n<li>While Compulsion, Double Fine, and Undead Labs have been transitioned to independent or new publisher ownership, <strong>Xbox says it&#8217;s now moving towards the studio closure of Ninja Theory<\/strong> after two attempted divestiture agreements &#8220;fell through&#8221;<\/li>\n<\/ul>\n<h2 id=\"does-anyone-expect-this-to-work\">Does anyone expect this to work?<\/h2>\n<p>I&#8217;ll believe it when I see it. In <a href=\"https:\/\/news.xbox.com\/en-us\/2026\/07\/06\/resetting-xbox\/\" target=\"_blank\">her announcement<\/a> initiating Xbox&#8217;s current sweeping restructuring, CEO Asha Sharma wrote that &#8220;great technology gets better when it gets simpler, not bigger&#8221;\u2014a principle that had been lost at Xbox through redundant layers of management complexity that &#8220;slowed decisions, blurred accountability, and made it harder to deliver for players.&#8221; Xbox, she said, was going to simplify.<\/p>\n<p>It&#8217;s now three months later, and Xbox&#8217;s idea of simplification apparently consists of shoving entire studios under new management with the belief that a sufficient number of developers can produce a respectable Halo or Fallout or Fable just because someone says they can.<\/p>\n<p>Meanwhile, <a href=\"https:\/\/www.pcgamer.com\/gaming-industry\/id-software-dev-says-mass-layoffs-like-microsofts-are-weakening-the-games-industry-because-developers-dont-have-the-incentive-to-care-anymore\/\" target=\"_blank\">its own developers maintain<\/a> that sustained organizational chaos makes quality game production impossible.<\/p>\n<div style=\"min-height: 250px;\">\n<div class=\"kwizly-quiz kwizly-ON92mW\"><\/div>\n<\/p><\/div>\n<p> <script src=\"https:\/\/kwizly.com\/embed\/ON92mW.js\" async><\/script><\/p>\n<div class=\"product\"><a data-dimension112=\"b15df1dc-b696-11f1-997c-69b428734aba\" data-action=\"Deal Block\" data-label=\"2026 games\" data-dimension48=\"2026 games\" target=\"_blank\" rel=\"nofollow\"><\/p>\n<figure class=\"van-image-figure \" >\n<div class='image-full-width-wrapper'>\n<div class='image-widthsetter' style=\"max-width:661px;\">\n<p class=\"vanilla-image-block\" style=\"padding-top:98.94%;\"><img loading=\"lazy\" decoding=\"async\" id=\"6offQUY4CXebir2TC27dMd\" name=\"kingdom come 2 square\" caption=\"\" alt=\"\" src=\"https:\/\/arcader.org\/wp-content\/uploads\/2026\/09\/xbox-lays-off-268-more-employees-merges-obsidian-into-bethesda-and-puts-activision-in-charge-of-halo.jpg\" mos=\"\" align=\"middle\" fullscreen=\"\" width=\"661\" height=\"654\" attribution=\"\" endorsement=\"\" credit=\"\" class=\"\"><\/p>\n<\/div>\n<\/div>\n<\/figure>\n<p><\/a><\/p>\n<p><a href=\"https:\/\/www.pcgamer.com\/games\/new-pc-games-2026\/\" target=\"_blank\" data-dimension112=\"b15df1dc-b696-11f1-997c-69b428734aba\" data-action=\"Deal Block\" data-label=\"2026 games\" data-dimension48=\"2026 games\" data-dimension25=\"\"><strong>2026 games<\/strong><\/a>: All the upcoming games<br \/><a href=\"https:\/\/www.pcgamer.com\/the-best-pc-games\/\" target=\"_blank\"><strong>Best PC games<\/strong><\/a>: Our all-time favorites<br \/><a href=\"https:\/\/www.pcgamer.com\/the-50-best-free-pc-games\/\" target=\"_blank\"><strong>Free PC games<\/strong><\/a>: Freebie fest<br \/><a href=\"https:\/\/www.pcgamer.com\/best-fps-games\/\" target=\"_blank\"><strong>Best FPS games<\/strong><\/a>: Finest gunplay<br \/><a href=\"https:\/\/www.pcgamer.com\/best-rpgs-of-all-time\/\" target=\"_blank\"><strong>Best RPGs<\/strong><\/a>: Grand adventures<br \/><a href=\"https:\/\/www.pcgamer.com\/the-best-co-op-games\/\" target=\"_blank\"><strong>Best co-op games<\/strong><\/a>: Better together<\/p>\n<\/div>\n<\/article>\n<p><a href=\"https:\/\/www.pcgamer.com\/gaming-industry\/xbox-lays-off-268-more-employees-merges-obsidian-into-bethesda-and-puts-activision-in-charge-of-halo\/\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>What happened Xbox executive vice president and chief content officer Matt Booty has announced another round of layoffs and studio reorganizations as part of the continuing &#8220;reset&#8221; of Microsoft&#8217;s gaming division Xbox has cut an additional 268 employees &#8220;across Halo Studios, other first-party studios, and the XGS management and central functions layer,&#8221; which Booty says brings the company &#8220;roughly three-quarters of the way&#8221; to completing its downsizing plan that previously put 1,600 people out of work in June Activision is now developing the next Halo game with &#8220;a new, purpose-built team,&#8221; and will also oversee Rare and Age of Empires developer World&#8217;s Edge Obsidian will be folded into Bethesda, and will continue its current projects like Grounded and the previously-announced &#8220;new Fallout project made in&hellip;<\/p>\n<p class=\"excerpt-more\"><a class=\"blog-excerpt button\" href=\"https:\/\/arcader.org\/news\/xbox-lays-off-268-more-employees-merges-obsidian-into-bethesda-and-puts-activision-in-charge-of-halo\/\">Read More&#8230;<\/a><\/p>\n","protected":false},"author":1,"featured_media":1698607,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[336],"tags":[5491],"class_list":["post-1698606","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-pc-gamer","tag-gaming-industry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Xbox lays off 268 more employees, merges Obsidian into Bethesda, and puts Activision in charge of Halo | Arcader News<\/title>\n<meta name=\"description\" content=\"What happenedXbox executive vice president and chief content officer Matt Booty has announced another round of layoffs and studio reorganizations as part\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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