Xbox confirms layoffs of 268 across Halo Studios, Xbox Game Studios & more

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Xbox also disclosed that it is beginning consultation on a 'proposed closure' of Ninja Theory.

TJ Denzer September 22, 2026 7:56 AM Microsoft 1

Xbox has announced another wave of layoffs, cutting a total of 268 positions across Halo Studios, Xbox Game Studios, and other undisclosed first-party studios. It has also announced sweeping organizational changes that look to have a major effect, including a currently likely future closing of Hellblade series developer Ninja Theory.

Xbox Chief Content Officer Matt Booty announced the layoffs and organizational changes in a press release in an Xbox Wire post, as well as details on some of the changes coming. “Activision will expand its remit to [Age of Empires developer] World’s Edge,” as well as working on the next Halo game itself with a new, separate team from the Call of Duty devs. Meanwhile, “Bethesda will expand its remit to Obsidian.” Turn 10 and Playground Games (both responsible for the Forza series with the latter working on the new Fable) will be merged into one studio to continue their projects.

XBOX fall in emojis: ⚙️ 💥 📞 🪖 🏟️ ⚽️ 🌴 🚘

— XBOX (@XBOX) September 18, 2026

Particularly of note is the update on Ninja Theory and Arkane, which it seems Xbox is preparing to close unless new agreements are made:

While the layoffs are not as large as the 3,200 announced in July by Xbox CEO Asha Sharma, the structural changes look set to shake up things drastically across Xbox’s portfolio. As we watch for further updates, stay tuned to the Xbox topic for more details and updates.

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TJ Denzer Senior News Editor

TJ Denzer is a player and writer with a passion for games that has dominated a lifetime. He found his way to the Shacknews roster in late 2019 and has worked his way to Senior News Editor since. Between news coverage, he also aides notably in livestream projects like the indie game-focused Indie-licious, the Shacknews Stimulus Games, and the Shacknews Dump. You can reach him at [email protected] and also find him on BlueSky @JohnnyChugs.

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