I’m writing this letter to share some news as part of the Xbox restructuring announced earlier this year.
First, we will eliminate 268 positions at Halo Studios, other development studios, and XGS management. [Xbox Game Studios] and central departments. The measures implemented since July, including the sale of the studio, have enabled us to complete approximately three-quarters of the previously announced restructuring. I am deeply grateful for all that our colleagues have created and understand how difficult today will be for those leaving and the teams around them.
Secondly, we are reorganizing our studio. Our goal is to strengthen our franchises and games by reducing the number of business units, integrating teams that already work closely together, and focusing our publishing expertise.
activision will expand its activities to include World’s Edge and Rare. Activision Blizzard will also develop the next Halo game under a new dedicated team that is separate from current Call of Duty development and plans. The small team at Halo Studios will continue to support the Halo community and existing games on the market.
Bethesda will expand its reach to include Obsidian, which will continue to work on current projects including Grounded, as well as new Fallout projects created in partnership with Bethesda Game Studios.
king will expand its footprint to include Microsoft Casual Games, bringing together two of our world leaders in casual game development.
Playground и Turn 10 will be merged into a studio focused on the Forza and Fable series. The two studios have been partners in creative and franchise development for more than a decade, and today’s changes will officially unify their efforts as a single team.
Third, news about the sale of our studios: In August, Compulsion and Double Fine were returned to the control of their owners, along with the intellectual property, game catalog, and seed funding. Undead Labs has now successfully completed the transition under similar terms and is working with the new publisher to release State of Decay 3 on Game Pass launch day. Unfortunately, two separate deals for Ninja Theory fell through. We will now begin consultations with staff on the proposed closure while continuing to explore other solutions. Negotiations with Arkane are ongoing and expected to last until the end of the year.
Today we must focus on supporting those affected by these events and caring for and respecting each other. I will be spending time in our studio next week. At our AGM on October 6, we will gather as a team at ALL-XBOX to reflect on our achievements and look to the future with one of the strongest gaming lineups in our history.
