Meanwhile, Ninja Theory look set for closure

Update, 23/09 at 9:00AM BST: A spokesperson for the Communications Workers of America (CWA) union has provided RPS with the following statement on this round of Xbox layoffs.

Today, 268 dedicated video game workers lost their livelihoods as Xbox continues to put profits ahead of the workers who are the heart and soul of the platform's games. CWA does not expect today's layoffs to impact union-represented workers.

Earlier this month, CWA members at Blizzard Entertainment secured layoff protections and recall rights in a breakthrough union contract that has the power to set new standards for the industry. Every video game worker deserves the dignity of layoff protections and a voice in shaping their studios for the better.

To those workers left at studios impacted today, and to workers across the industry, our message is simple: join us. Together we have a stronger voice in shaping our industry into what it ought to be.

Original story follows:

Well, there you go. Xbox have enacted a second round of layoffs and internal upheaval this year, following July's initial shooting of 1600 staff into the sun and parting ways with multiple studios.

This time, 268 staff have been let go, while a bunch of studios still under the Xbox umbrella have been folded into or underneath each other. Meanwhile, the Halo series has been handed to Activision.

"We are eliminating 268 roles across Halo Studios, other first-party studios, and the XGS management and central functions layer," Xbox chief content officer Matt Booty wrote in a message sent to Xbox staff and subsequently published on Xbox Wire. "The actions completed since July, inclusive of the studio divestitures, bring us roughly three-quarters of the way through previously announced restructuring."

He went on to outline that Xbox are "reorganising" their studios with this round of cuts. The aim's "to strengthen [Xbox's] franchises and games by operating fewer business units, aligning groups that already work closely together, and focusing our publishing expertise".

Activision are being given custody of Age of Empires devs World’s Edge and Sea of Thieves makers Rare, in addition to the Halo series. A "new, purpose-built team that is separate from ongoing development and plans for Call of Duty" will develop the next Halo entry, with the remaining shadow of Halo Studios "supporting the Halo community and games in-market".

In a move foreshadowed by the former studio having their efforts redirected to a new Fallout game following the July layoffs, The Outer Worlds and Avowed developers Obsidian have been slotted into Bethesda. Meanwhile, Forza and Fable makers Playground Games and Turn 10 Studios have been merged together into one studio putting together new entries into those two series. Finally, mobile juggernaut King have eaten up Microsoft Casual Games, developers of the company's solitaire, sudoku and mahjong apps.

Update: According to an internal email seem by Game Developer, Blizzard developers have been told they're not affected by "today's announcements". That wording doesn't rule out the potential that workers at the World of Warcraft studio might not be let go further down the line, whenever Xbox pull the trigger on the remaining quarter of their planned bloodbath.

Original story continues below:

Booty also provided an update on the studios Xbox decided to part ways with back in July. Sadly, Hellblade devs Ninja Theory are consulting on a likely closure after having two deals to buy them up fall through. Undead Labs have managed to avoid that fate, much like Compulsion Games and Double Fine, by becoming "an independent, employee-owned" studio and finding a new publisher for State of Decay 3, which is still targeting a 2027 release. The destiny of Dishonored developers Arkane is still up in the air, with consultation over the studio's future "expected to continue through the end of the year".

Solidarity to all the developers affected by this round of Xbox layoffs and cuts. Xbox parent company Microsoft are still currently subject to a BDS movement boycott over their reported ties to the Israeli military.