Continue the Reset
The landscape of Xbox development is undergoing a significant shift, marking a strategic repositioning aimed at strengthening core franchises and refining publishing expertise. This comprehensive effort, framed as an overall reset, involves major structural changes across the organization.
The initiative has begun by streamlining operations, involving the elimination of 268 roles across Halo Studios, other first-party studios, and the central management functions of XGS. These actions, including recent studio divestitures, put the organization roughly three-quarters of the way through the previously announced restructuring plan.
The core goal of this reorganization is to focus resources and align groups that already collaborate closely, ensuring that publishing and development expertise are concentrated where they can yield the greatest impact. This means shifting focus to solidify established franchises.
Key studio reorganizations reflect this focus on creative alignment. Activision is expanding its remit to encompass World’s Edge and Rare, further consolidating its influence. Meanwhile, Bethesda will expand its reach to include Obsidian, ensuring continued development on projects like Grounded and new Fallout titles in collaboration with Bethesda Game Studios. In a move to unite creative forces, Playground and Turn 10 are merging into a single studio dedicated to the Forza and Fable franchises.
Further strategic moves consolidate casual game leadership, as King will expand its remit to include Microsoft Casual Games, uniting two global leaders in casual game design and live operations.
In the realm of development and publishing, several studio transitions are also underway. Compulsion and Double Fine have returned their intellectual property, back catalogs, and funding to management. Undead Labs has successfully transitioned on similar terms and is set to launch State of Decay 3 on Game Pass. While negotiations for two separate agreements involving Ninja Theory have concluded, the organization is now beginning consultation with employees regarding proposed closures while exploring alternative paths forward. Consultation with Arkane remains active and expected to continue through the end of the year.
As this reset unfolds, the focus is on supporting the teams affected by these changes and fostering an environment of care and respect. The next step is a collective reflection, with an ALL-XBOX team gathering at the upcoming town hall on October 6 to review progress and look ahead to a future defined by one of the strongest game lineups in history.
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