Xbox’s Latest Wave of Layoffs Was Rough, Reorganizations Announced

Xbox gave us the second major update of the ongoing Xbox reset and it’s a rough one as 268 employees have been affected across various studios.

Xbox's Latest Restructuring Changes

Here's a snapshot of the reorganization:

• - World's Edge and Rare will move under Activision. Nearly half of World's Edge was reportedly laid off.

• - Obsidian Entertainment will move under Bethesda, with its current projects continuing.

• - Playground Games and Turn 10 Studios will merge into one studio focused on the Forza and Fable franchises.

• - Compulsion Games, Undead Labs, and Double Fine Productions have transitioned to independent management.

• - Ninja Theory to close after two separate deals fell through, it is said Microsoft and the studio is still finding other options

• - Activision will develop the next Halo game with a new, purpose-built team.

• - A small team at Halo Studios will remain to support the Halo community and existing games.

• - Microsoft Casual Games will move under King.

• - Arkane Lyon's future is still uncertain

The painful reality of this is that they are not even done with the reset, so expect more major changes in the coming months. Xbox says the actions completed since July have brought it roughly three-quarters of the way through the previously announced restructuring.

The good thing to come out of this is that Compulsion Games, Double Fine Productions, and Undead Labs found their outs during this whole reset, so they get to stay as studios and work on future titles. Undead Labs, specifically, is still on track to release State of Decay 3 under a new publisher, and it will still be available on Xbox Game Pass on day one.

Ninja Theory and Arkane Lyon Face an Uncertain Future

The really bad thing is the state of studios Ninja Theory and Arkane Lyon. Ninja Theory lost two separate deals to save the studio, and if they don't find a solution, Microsoft could shut it down. Microsoft has begun consultation on a proposed closure while still exploring other paths forward. Arkane Lyon is also on the chopping block, with consultation still underway and expected to continue through the end of the year.

It's rough to see, but It feels like Microsoft and Xbox grew too big, too fast, and the company's heavy investment in Xbox Game Pass is now coming back to bite it years later. One could hope this is the worst it can get, but I wouldn't be surprised if the next wave is just as brutal.

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About the Author - Carlos Hernandez

Carlos Hernandez is the founder and Editor-in-Chief of Too Much Gaming, where he writes about video games, reviews, and industry news. A lifelong gamer, he would do anything to experience Final Fantasy Tactics for the first time again and has a love/hate relationship with games that require hunting for new gear to improve your character.