Xbox continues layoffs, hands Halo development to Activision

In news that should please no one except Microsoft stockholders, Xbox laid off a reported 268 workers on Tuesday, continuing its plan to eliminate 3,200 positions as part of a major company reorganization. The announcement came via an internal memo from Xbox chief content officer Matt Booty (per The Hollywood Reporter), who said Xbox is in discussions with studio Ninja Theory (Hellblade) about a “proposed closure” (with the future of Ninja Theory’s Senua now “in doubt,” according to IGN). Among the other studios affected: Double Fine (Psychonauts) and Compulsion (South Of Midnight) will pivot to independent management; ditto Undead Labs, which is expected to launch State of Decay 3 on Game Pass under new ownership; Bethesda will take on Obsidian as development on a new Fallout game continues; King, the Candy Crush empire, will absorb Microsoft Casual Games, including Solitaire and Minesweeper; and Playground (Forza Horizon) will merge with Turn 10 (Forza Motorsport).