Xbox has reduced its number of studios from 23 to 12 in five years, and the restructuring is still not over

Abstract:

Xbox continues to promote internal restructuring this week, with about 300 employees losing their jobs. The focus of adjustments includes merging existing studios. After resignations, closures and integrations in recent years, Xbox's studios have been reduced from 23 in 2021 to 12.

This round of contraction comes after Xbox expanded its large-scale publishing assets. Microsoft completed the acquisition of Activision Blizzard for nearly US$70 billion in 2023, and the latter is still one of the 12 studios under Xbox.

Adjustments announced this week also involve the Halo series. The next "Halo" will be developed by Activision; Halo Studios has not closed, but most of the team members have left, and the studio will remain to support the "Halo" community. The team had yet to develop an original new Halo game before this round of adjustments.

Rare will also be retained and will be transferred to Activision, while continuing to update Sea of ​​Thieves. There's no word yet on how this change will affect Rare's future projects, and some players are worried that the team may instead provide development support for Call of Duty.

In other merger arrangements, Obsidian Entertainment will transfer to Bethesda and continue to develop new "Fallout" games; Turn 10 will collaborate with Playground Games to participate in future "Forza Motorsport" and "Fable" projects.

Among the studios belonging to Xbox in 2021, Alpha Dog, Tango, The Initiative and Arkane Austin have since closed one after another. Tango was later acquired by Krafton and resumed operations, and Alpha Dog returned as an independent studio. Double Fine, Compulsion Games and Undead Labs have also become independent again.

Some teams still within the Xbox system have also experienced large-scale staff reductions, including Halo Studios, "Doom" developer id Software, and Zenimax Online. Ninja Theory failed to complete an independent transaction and is currently at risk of closure; the future of Arkane Lyon is also unclear. Xbox said that the entire restructuring process is only about 75% complete, and the existing 12 studios may continue to be reduced.