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Top / Tue, 22 Sep 2026 The Hollywood Reporter

More Xbox Layoffs Hit as Massive Reorg Continues; Activision to Make Next ‘Halo’ Game

The Halo games have previously been made by franchise creator Bungie and later Halo Studios (FKA 343 Industries). “We’re thrilled to welcome Halo, Rare, and World’s Edge to Activision. These teams and their games have inspired fans around the world for decades,” Rob Kostich, the Activision president, said in a statement. “For 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. To the World’s Edge and Rare teams, we can’t wait to get to work together.”Read Booty’s note to staff below.

Xbox is laying off another 268 workers today, its chief content officer Matt Booty announced in an internal memo obtained by The Hollywood Reporter. The latest reductions are simply the next round in a broader mission to reduce the staff size by 3,200; Xbox is currently about three-quarters of the way through those cuts, first announced in July.

A number of studios have been affected by today’s news. Undead Labs (State of Decay 3 coming to Game Pass on day one) is being spun out to its own management; Bethesda is absorbing Obsidian (the studio making the new Fallout game); the King business (Candy Crush) is taking in Microsoft Casual Games (Solitaire, Minesweeper); Playground (the Forza: Horizon series) and Turn 10 (Forza Motorsport) will merge; and Ninja Theory is being shuttered.

And then there is the big consumer news of the day: Activision, the Call of Duty studio, will make the next Halo game, which THR is told will be a full-feature, mainline installment into the franchise. The Halo games have previously been made by franchise creator Bungie and later Halo Studios (FKA 343 Industries). Activision also makes Crash Bandicoot, Spyro the Dragon and the Tony Hawk Pro Skater games.

“We’re thrilled to welcome Halo, Rare, and World’s Edge to Activision. It’s an honor and a responsibility that we do not take lightly. These teams and their games have inspired fans around the world for decades,” Rob Kostich, the Activision president, said in a statement. “For 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. It is a bold ambition, one that this franchise deserves. We have already begun assembling a purpose-built team, unique in capability and talent, ready and excited to deliver this next chapter with the community. To the World’s Edge and Rare teams, we can’t wait to get to work together.”

Read Booty’s note to staff below.

Call of Duty Modern Warfare 4 Courtesy of Activision

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