{"id":7402,"date":"2026-09-23T07:03:59","date_gmt":"2026-09-23T07:03:59","guid":{"rendered":"https:\/\/overhypedgamer.com\/?p=7402"},"modified":"2026-09-23T07:04:34","modified_gmt":"2026-09-23T07:04:34","slug":"xbox-2026-restructuring-explained","status":"publish","type":"post","link":"https:\/\/overhypedgamer.com\/hr\/xbox-2026-restructuring-explained\/","title":{"rendered":"Xbox&#8217;s Massive 2026 Restructuring Explained: Layoffs, Studio Moves and Everything You Need to Know"},"content":{"rendered":"<p class=\"wp-block-paragraph\" data-block-type=\"core\"><strong>Microsoft has announced another major phase of its Xbox restructuring, cutting 268 jobs and dramatically reorganizing its first-party studios. Halo is moving under Activision, Obsidian under Bethesda, Rare and World&#8217;s Edge under Activision, Playground and Turn 10 are merging, Undead Labs has gone independent, while Ninja Theory faces potential closure.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\" data-block-type=\"core\">The September 22 changes are part of the broader <a href=\"https:\/\/overhypedgamer.com\/hr\/company\/microsoft\/\" data-type=\"ohg_company\" data-id=\"184\">Xbox <\/a>&#8220;reset&#8221; announced in July, when Microsoft revealed plans to eliminate approximately <strong>3,200 positions during its current fiscal year<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" data-block-type=\"core\">Xbox chief content officer Matt Booty says Microsoft is now roughly <strong>three-quarters of the way through<\/strong> that restructuring.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" data-block-type=\"core\">Here&#8217;s where everything stands after the latest changes.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\" data-block-type=\"core\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"537\" src=\"https:\/\/overhypedgamer.com\/wp-content\/uploads\/2026\/05\/new-boot-xbox-1024x537.avif\" alt=\"Xbox\" class=\"wp-image-3855\" srcset=\"https:\/\/overhypedgamer.com\/wp-content\/uploads\/2026\/05\/new-boot-xbox-1024x537.avif 1024w, https:\/\/overhypedgamer.com\/wp-content\/uploads\/2026\/05\/new-boot-xbox-300x157.avif 300w, https:\/\/overhypedgamer.com\/wp-content\/uploads\/2026\/05\/new-boot-xbox-768x403.avif 768w, https:\/\/overhypedgamer.com\/wp-content\/uploads\/2026\/05\/new-boot-xbox-1536x806.avif 1536w, https:\/\/overhypedgamer.com\/wp-content\/uploads\/2026\/05\/new-boot-xbox.avif 1913w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h2 id=\"268-more-xbox-employees-have-been-laid-off\" class=\"wp-block-heading\" data-block-type=\"core\">268 More Xbox Employees Have Been Laid Off<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" data-block-type=\"core\">Microsoft confirmed that <strong>268 positions are being eliminated<\/strong> in the latest round.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" data-block-type=\"core\">Importantly, these aren&#8217;t additional cuts on top of the previously announced 3,200 positions. They are part of that existing restructuring plan.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" data-block-type=\"core\">Based on information that has emerged since the announcement, affected teams include:<\/p>\n\n\n\n<ul class=\"wp-block-list\" data-block-type=\"core\">\n<li data-block-type=\"core\"><strong>Halo Studios<\/strong><\/li>\n\n\n\n<li data-block-type=\"core\"><strong>The Coalition<\/strong><\/li>\n\n\n\n<li data-block-type=\"core\"><strong>World&#8217;s Edge<\/strong><\/li>\n\n\n\n<li data-block-type=\"core\"><strong>Treyarch<\/strong><\/li>\n\n\n\n<li data-block-type=\"core\"><strong>Xbox Game Studios management and central functions<\/strong><\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\" data-block-type=\"core\">The scale reportedly varies significantly between teams, ranging from relatively small reductions to much larger cuts within individual groups.<\/p>\n\n\n\n<h2 id=\"halo-is-moving-under-activision\" class=\"wp-block-heading\" data-block-type=\"core\">Halo Is Moving Under Activision<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" data-block-type=\"core\">Perhaps the biggest change involves Microsoft&#8217;s flagship Halo franchise.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" data-block-type=\"core\"><strong>Activision will develop the next Halo game<\/strong>, with Microsoft creating a new purpose-built team specifically for the project.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" data-block-type=\"core\">This team will operate separately from Activision&#8217;s existing Call of Duty development.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" data-block-type=\"core\">Activision president Rob Kostich has already set an ambitious target:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\" data-block-type=\"core\">\n<p class=\"wp-block-paragraph\" data-block-type=\"core\">\u201cFor 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.\u201d<\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\" data-block-type=\"core\">A smaller team at Halo Studios will remain in place to support the <strong>Halo community and currently available games<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" data-block-type=\"core\">Halo Studios itself has also been affected by the latest layoffs.<\/p>\n\n\n\n<h2 id=\"rare-and-world-s-edge-are-moving-under-activision\" class=\"wp-block-heading\" data-block-type=\"core\">Rare and World&#8217;s Edge Are Moving Under Activision<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" data-block-type=\"core\"><a href=\"https:\/\/overhypedgamer.com\/hr\/company\/activision\/\" data-type=\"ohg_company\" data-id=\"252\">Activision<\/a>&#8216;s responsibilities aren&#8217;t stopping with Halo.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" data-block-type=\"core\">Microsoft confirmed that <strong>Rare and World&#8217;s Edge will also move under Activision&#8217;s remit<\/strong> as Xbox reduces the number of separate business units operating across its gaming organization.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" data-block-type=\"core\">The studios aren&#8217;t being closed as part of the move. Instead, they will now operate within Activision&#8217;s expanded structure.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" data-block-type=\"core\">Microsoft says the objective is to group teams that already work closely together and consolidate publishing expertise.<\/p>\n\n\n\n<h2 id=\"obsidian-entertainment-is-moving-under-bethesda\" class=\"wp-block-heading\" data-block-type=\"core\">Obsidian Entertainment Is Moving Under Bethesda<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" data-block-type=\"core\"><strong>Obsidian Entertainment will now operate under Bethesda<\/strong>, another significant change considering the studio&#8217;s RPG background.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" data-block-type=\"core\">Its existing projects will continue.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" data-block-type=\"core\">Microsoft specifically confirmed that Obsidian will keep working on <strong>Grounded<\/strong> and its new <strong>Fallout project<\/strong>, which is being developed alongside <a href=\"https:\/\/overhypedgamer.com\/hr\/company\/bethesda\/\" data-type=\"ohg_company\" data-id=\"199\">Bethesda<\/a> Game Studios.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" data-block-type=\"core\">Bringing Obsidian and Bethesda under the same organizational structure therefore creates a more direct relationship between the two studios as work on Fallout continues.<\/p>\n\n\n\n<h2 id=\"playground-games-and-turn-10-are-merging\" class=\"wp-block-heading\" data-block-type=\"core\">Playground Games and Turn 10 Are Merging<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" data-block-type=\"core\">Microsoft is also combining two of its major racing developers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" data-block-type=\"core\"><strong>Playground Games and Turn 10 Studios will become a single studio<\/strong>, with the combined organization working across the <strong>Forza and Fable franchises<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" data-block-type=\"core\">Turn 10 has historically led Forza Motorsport, while <a href=\"https:\/\/overhypedgamer.com\/hr\/company\/playground-games\/\" data-type=\"ohg_company\" data-id=\"197\">Playground<\/a> is responsible for Forza Horizon and the upcoming Fable.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" data-block-type=\"core\">Rather than simply moving one studio beneath another publishing organization, Microsoft is directly combining the two teams.<\/p>\n\n\n\n<h2 id=\"undead-labs-is-officially-independent\" class=\"wp-block-heading\" data-block-type=\"core\">Undead Labs Is Officially Independent<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" data-block-type=\"core\">Not every studio affected by Microsoft&#8217;s restructuring is remaining within Xbox.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" data-block-type=\"core\"><strong>State of Decay developer Undead Labs has officially completed its separation from Microsoft<\/strong>, becoming independent for the first time since being acquired in 2018.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" data-block-type=\"core\">The change doesn&#8217;t mean State of Decay 3 is disappearing.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" data-block-type=\"core\">Undead Labs says <strong>State of Decay 3 remains actively in development<\/strong>, is currently in alpha and is targeting closed beta before the end of 2026.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" data-block-type=\"core\">The game remains planned for <strong>2027 on PC, <a href=\"https:\/\/overhypedgamer.com\/hr\/kategorija\/playstation\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"PlayStation\" target=\"_blank\" rel=\"noopener\">PlayStation<\/a> and Xbox<\/strong>, alongside Xbox Game Pass.<\/p>\n\n\n\n<h2 id=\"ninja-theory-faces-potential-closure\" class=\"wp-block-heading\" data-block-type=\"core\">Ninja Theory Faces Potential Closure<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" data-block-type=\"core\">The situation is considerably more uncertain for <strong>Ninja Theory<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" data-block-type=\"core\">Microsoft confirmed that two separate agreements involving the studio failed to materialize. The company has subsequently begun consultations with employees regarding a <strong>potential closure<\/strong>, while continuing to explore other possibilities.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" data-block-type=\"core\">Geoff Keighley has also reported that Xbox will close Ninja Theory after the deals fell through.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" data-block-type=\"core\">Interestingly, Microsoft filed a new standalone <strong>\u201cSenua\u201d trademark on September 15<\/strong>, shortly before the latest restructuring announcement.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" data-block-type=\"core\">Microsoft already controls trademarks including Senua&#8217;s Saga and Senua&#8217;s Sacrifice, but the new filing suggests it intends to retain control of the Senua IP even if Ninja Theory ultimately closes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" data-block-type=\"core\">That doesn&#8217;t confirm another Senua game will be developed without Ninja Theory, however.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\" data-block-type=\"core\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"573\" src=\"https:\/\/overhypedgamer.com\/wp-content\/uploads\/2026\/06\/senua-1024x573.avif\" alt=\"\" class=\"wp-image-4541\" srcset=\"https:\/\/overhypedgamer.com\/wp-content\/uploads\/2026\/06\/senua-1024x573.avif 1024w, https:\/\/overhypedgamer.com\/wp-content\/uploads\/2026\/06\/senua-300x168.avif 300w, https:\/\/overhypedgamer.com\/wp-content\/uploads\/2026\/06\/senua-768x430.avif 768w, https:\/\/overhypedgamer.com\/wp-content\/uploads\/2026\/06\/senua-1536x860.avif 1536w, https:\/\/overhypedgamer.com\/wp-content\/uploads\/2026\/06\/senua.avif 1625w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h2 id=\"what-does-the-new-xbox-structure-look-like\" class=\"wp-block-heading\" data-block-type=\"core\">What Does the New Xbox Structure Look Like?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" data-block-type=\"core\">After all of the announced changes, Microsoft&#8217;s first-party organization is becoming significantly more consolidated.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" data-block-type=\"core\"><strong>Activision<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\" data-block-type=\"core\">\n<li data-block-type=\"core\">Rare<\/li>\n\n\n\n<li data-block-type=\"core\">World&#8217;s Edge<\/li>\n\n\n\n<li data-block-type=\"core\">Next Halo development team<\/li>\n\n\n\n<li data-block-type=\"core\"><strong>Existing Activision operations including Call of Duty<\/strong><\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\" data-block-type=\"core\"><strong>Bethesda<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\" data-block-type=\"core\">\n<li data-block-type=\"core\">Obsidian Entertainment<\/li>\n\n\n\n<li data-block-type=\"core\">Bethesda&#8217;s existing studios<\/li>\n\n\n\n<li data-block-type=\"core\"><strong>Obsidian and Bethesda Game Studios collaborating on the new Fallout project<\/strong><\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\" data-block-type=\"core\"><strong>Merged Studio<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\" data-block-type=\"core\">\n<li data-block-type=\"core\">Playground Games<\/li>\n\n\n\n<li data-block-type=\"core\">Turn 10 Studios<\/li>\n\n\n\n<li data-block-type=\"core\"><strong>Focused on Forza and Fable<\/strong><\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\" data-block-type=\"core\"><strong>Independent<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\" data-block-type=\"core\">\n<li data-block-type=\"core\">Undead Labs<\/li>\n\n\n\n<li data-block-type=\"core\">Double Fine Productions<\/li>\n\n\n\n<li data-block-type=\"core\">Compulsion Games<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\" data-block-type=\"core\"><strong>Potential Closure<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\" data-block-type=\"core\">\n<li data-block-type=\"core\">Ninja Theory<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\" data-block-type=\"core\"><strong>Halo Studios will retain a smaller team supporting existing Halo games and the community while responsibility for the next major installment shifts to Activision.<\/strong><\/p>\n\n\n\n<h2 id=\"xbox-says-the-reset-isn-t-finished-yet\" class=\"wp-block-heading\" data-block-type=\"core\">Xbox Says the Reset Isn&#8217;t Finished Yet<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" data-block-type=\"core\">Despite the scale of the September restructuring, Microsoft&#8217;s wider plan still isn&#8217;t complete.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" data-block-type=\"core\">Matt Booty told employees that Xbox is approximately <strong>75% through<\/strong> the restructuring announced in July, meaning additional changes could still take place before the process concludes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" data-block-type=\"core\">The strategy is becoming increasingly clear: Microsoft is reducing the number of separate business units, consolidating development teams beneath larger publishing organizations and allowing or attempting to move some studios outside Xbox entirely.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" data-block-type=\"core\">For players, the immediate projects haven&#8217;t necessarily disappeared. State of Decay 3 remains in development, Obsidian continues its projects, Rare and World&#8217;s Edge remain operational, and Microsoft has already committed a new Activision-led team to Halo.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" data-block-type=\"core\">But structurally, <strong>Xbox&#8217;s first-party organization now looks significantly different than it did only a few months ago \u2014 and Microsoft says the reset still isn&#8217;t finished.<\/strong><\/p>","protected":false},"excerpt":{"rendered":"<p>Microsoft has announced another major phase of its Xbox restructuring, cutting 268 jobs and dramatically reorganizing its first-party studios. Halo is moving under Activision, Obsidian under Bethesda, Rare and World&#8217;s Edge under Activision, Playground and Turn 10 are merging, Undead Labs has gone independent, while Ninja Theory faces potential closure. The September 22 changes are [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":3855,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_gspb_post_css":"","_shortscore_rating":"","_shortscore_game":"","_shortscore_summary":"","iawp_total_views":0,"footnotes":""},"categories":[13],"tags":[],"ohg_news_type":[],"ohg_game":[],"ohg_company":[252,199,236,184,197],"ohg_platform":[177],"class_list":["post-7402","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","ohg_company-activision","ohg_company-bethesda","ohg_company-blizzard","ohg_company-microsoft","ohg_company-playground-games","ohg_platform-xbox-series-xs"],"blocksy_meta":[],"acf":[],"_links":{"self":[{"href":"https:\/\/overhypedgamer.com\/hr\/wp-json\/wp\/v2\/posts\/7402","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/overhypedgamer.com\/hr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/overhypedgamer.com\/hr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/overhypedgamer.com\/hr\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/overhypedgamer.com\/hr\/wp-json\/wp\/v2\/comments?post=7402"}],"version-history":[{"count":2,"href":"https:\/\/overhypedgamer.com\/hr\/wp-json\/wp\/v2\/posts\/7402\/revisions"}],"predecessor-version":[{"id":7406,"href":"https:\/\/overhypedgamer.com\/hr\/wp-json\/wp\/v2\/posts\/7402\/revisions\/7406"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/overhypedgamer.com\/hr\/wp-json\/wp\/v2\/media\/3855"}],"wp:attachment":[{"href":"https:\/\/overhypedgamer.com\/hr\/wp-json\/wp\/v2\/media?parent=7402"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/overhypedgamer.com\/hr\/wp-json\/wp\/v2\/categories?post=7402"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/overhypedgamer.com\/hr\/wp-json\/wp\/v2\/tags?post=7402"},{"taxonomy":"ohg_news_type","embeddable":true,"href":"https:\/\/overhypedgamer.com\/hr\/wp-json\/wp\/v2\/ohg_news_type?post=7402"},{"taxonomy":"ohg_game","embeddable":true,"href":"https:\/\/overhypedgamer.com\/hr\/wp-json\/wp\/v2\/ohg_game?post=7402"},{"taxonomy":"ohg_company","embeddable":true,"href":"https:\/\/overhypedgamer.com\/hr\/wp-json\/wp\/v2\/ohg_company?post=7402"},{"taxonomy":"ohg_platform","embeddable":true,"href":"https:\/\/overhypedgamer.com\/hr\/wp-json\/wp\/v2\/ohg_platform?post=7402"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}