Activision Will Develop the Next Halo as Xbox Cuts 268 Roles
Microsoft is eliminating 268 roles across Halo Studios, other first-party studios and the Xbox Game Studios management and central-functions layer as part of its continuing Xbox restructuring.
Alongside the job losses, Xbox has confirmed a major reorganisation of its studios. Activision will expand its remit to include Rare and World’s Edge, and a new purpose-built Activision team will develop the next Halo title.
The details were published by Xbox Wire on 22 September 2026 in a message sent to Team Xbox employees. The effect on the 268 people whose roles are being eliminated is the most immediate and important part of the announcement.
268 roles are being eliminated
Xbox chief content officer Matt Booty said the 268 affected roles are spread across Halo Studios, other first-party studios and the Xbox Game Studios management and central-functions layer.
Booty said the actions completed since July, including studio divestitures, bring Xbox roughly three-quarters of the way through its previously announced restructuring. Microsoft has not published a studio-by-studio breakdown of all 268 roles, and Pixalrig will not speculate about individual employees or teams beyond the official information.
Activision will develop the next Halo
Microsoft says Activision will develop the next Halo title through a new, purpose-built team. Xbox explicitly describes that team as separate from Activision’s ongoing Call of Duty development and plans.
A small team at Halo Studios will remain in place to support the Halo community and games already on the market. Microsoft has not announced the next Halo game’s title, release date, platforms, scope or team size.
This is therefore a confirmed change in development responsibility, but it is not confirmation of when the next main Halo game will arrive or what form it will take.
Rare and World’s Edge move under Activision’s remit
Activision’s expanded remit will also include Rare and World’s Edge. Xbox did not say that Activision is directly taking over every project at those studios, so the announcement should not be interpreted more broadly than Microsoft’s wording.
The wider confirmed studio changes are:
- Bethesda’s remit will expand to include Obsidian. Obsidian will continue its current projects, including Grounded, and work on a new Fallout project with Bethesda Game Studios.
- King’s remit will expand to include Microsoft Casual Games.
- Playground Games and Turn 10 will become one studio focused on the Forza and Fable franchises.
Completed changes versus ongoing consultations
Microsoft says Compulsion Games and Double Fine returned to their management in August with their intellectual property, back catalogues and runway funding. Undead Labs has now transitioned on similar terms and will release State of Decay 3 with a new publisher, including a day-one Game Pass launch.
Other situations are not complete:
- Ninja Theory: Microsoft says two potential agreements fell through. It will begin employee consultation on a proposed closure while continuing to explore other options. Ninja Theory has not been confirmed as closed.
- Arkane: consultation remains underway and is expected to continue until the end of 2026. Microsoft has not announced that Arkane has closed.
What remains unknown
Xbox has confirmed the new studio structure and the development responsibility for the next Halo, but it has not detailed future staffing levels, release schedules or the long-term fate of every project affected by the reorganisation.
The consultation processes involving Ninja Theory and Arkane are still active. Their outcomes should not be treated as settled until Microsoft provides a further official update.
Official source
All confirmed details in this report come from Xbox Wire’s “Continuing Our Reset” announcement, published on 22 September 2026.
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