Xbox Layoffs and Studio Mergers Said to be Imminent as Huge Halo Move Rumored

Xbox will consolidate game studios, according to rumors

However, news of consolidation among Xbox’s game studios is new. The Information offers no further detail on which studios are involved, and speculation is rife. Xbox is a huge organization; since the acquisition spree under former CEO Phil Spencer in the late 2010s and early 2020s, it comprises at least three major, operationally distinct game publishers (Xbox Game Studios, Bethesda Softworks, and Activision Blizzard, though Activision and Blizzard act as separate publishing entities). So there’s plenty of room for moves.

The strongest report, backed by reliable leaker NateTheHate, is that the Halo brand is to be moved under Activision Blizzard. NateTheHate said that while Halo was moving, they did not know the fate of developer Halo Studios. The suggestion is that a new developer will take over the franchise under the auspices of the Call of Duty publisher.

NateTheHate said that “more than just Halo” will move to Activision Blizzard, and “other studios will move to different companies within Xbox.” Another potential move is that Obsidian Entertainment will move from Xbox Game Studios to Bethesda. This is just speculation at present, but would make sense considering Obsidian is collaborating with Bethesda Game Studios on a new Fallout game.

Sharma has promised a sweeping restructure at Xbox, and is said to favor a clear focus on the group’s biggest franchises. According to The Information, Microsoft top brass Satya Nadella and Amy Hood have shelved the idea of carving out or selling off Xbox in favor of supporting Sharma’s overhaul.