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Xbox reorganization: Activision controls Halo and Rare, Bethesda includes Obsidian and more

Olivia Bennett by Olivia Bennett
September 22, 2026
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Xbox reorganization: Activision controls Halo and Rare, Bethesda includes Obsidian and more
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The “Xbox reset” continues Determined by the new management of CEO Asha Sharma, there are several messages general reorganization Microsoft Gaming Division, which includes the following facts: Activision will handle Halo and Rare, with Bethesda adding Obsidian and other changes Worth noting.

It’s all part of a plan that started last summer, resulting in multiple layoffs and the spin-off of some teams, such as Double Fine, Ninja Theory, and Compulsion Games, but in this case, it appears to be a new organization at Xbox Game Studios first, essentially maintaining the existing teams rather than shutting down, but modifying the company’s organizational chart.

Unfortunately, there is no shortage layoffs Also in this case: According to an official communication issued by Xbox Game Studios team leader Matt Booty, 268 employees will be laid off, mainly belonging to Halo Studios, other teams, and management and central departments within the studio.

Major moves and restructuring

The purpose of the reorganization is to streamline the internal organization and attempt to centralize more responsibility and development between the old Xbox Game Studios team and the Xbox team. Bethesda and Activision divisions, relocating studios Depending on the jurisdiction.

Asha Sharma and Matt Booty
Asha Sharma and Matt Booty

Essentially, the most important elements that emerged from this reorganization were:

  • In addition to World’s Edge, Activision has expanded its responsibilities and taken control of Rare, but other notable news is Will deal with Halo, new chapters are already in development and assigned to a specially created team, independent of the Call of Duty organization
  • Bethesda expands functionality to include Obsidianwill continue to work with Bethesda Game Studios on current projects such as Grounded and Fallout
  • Playground and Turn 10 merged In a studio currently focused on the Forza and Fable series, it actually continues to exist as one entity
  • King expands to include the Microsoft Casual Games section, bringing together all projects related to action and “casual” in one structure

As for the spin-off teams, Booty updated the status of each studio currently separated from Xbox Game Studios, confirming that Compulsion and Double Fine have returned independently and control their own IP.

Kojima believes Asha Sharma is building a new Xbox, but I don’t know if Physint will also be available on PS5

Kojima believes Asha Sharma is building a new Xbox, but I don’t know if Physint will also be available on PS5

Laboratory of the Undead Apparently, it has found a new publisher and will launch State of Decay 3 as scheduled, directly on Game Pass as previously announced.

The bad news here is worrying ninja theory: Apparently, two attempts to negotiate with potential buyers were unsuccessful, and Microsoft has now begun talks about a possible closure, but discussions about a possible sale will continue regardless.

At the same time, also Alkane The uncertain situation continues: “Consultations are ongoing and we expect to continue until the end of the year,” Booty reports, without further elaborating on the current situation of the team, which until recently was regularly involved in the production of Marvel Blade, but we don’t know what the current situation is.

According to reports from the head of Xbox Game Studios, the reorganization Not finished yet: Currently at “75%”, so there will be another wave of layoffs and changes in the coming months, within the total already announced last July.

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