It's official: Xbox is cutting 268 more jobs, handing over development of the next major Halo game to Activision, and completely shutting down Ninja Theory. What was still a rumor this morning is now officially confirmed — and to an extent that will make even hardcore Xbox fans gasp.
Microsoft announced the changes on September 22, 2026, via an internal memo overseen by Xbox head Matt Booty, which was published under the title “Continuing Our Reset” on Xbox Wire. The name says it all: It's the next step in the months-long “Xbox Reset,” the restructuring following the Activision-Blizzard acquisition.
What Does the Activision Takeover Mean for the Halo Series?
The next major Halo game will no longer be developed by Halo Studios (formerly 343 Industries), but by Activision. Important to note: This is a team specifically set up for this purpose, not the Call of Duty team. Nevertheless, a queasy feeling remains — after all, Halo was Xbox's flagship for decades, developed by a standalone first-party studio. The fact that the CoD publisher, of all entities, is now taking the helm is a clear signal of how much Xbox's priorities have shifted. More information about the brand is still available on Halo Waypoint.
Halo Studios effectively barely continues as a brand — a large part of its previous structure will be dissolved or reorganized as part of the restructuring. Rare, the studio behind Banjo-Kazooie and Sea of Thieves, will also report directly to Activision starting now, instead of the previous Xbox structure. Obsidian Entertainment (known for The Outer Worlds and Pentiment) will be organizationally assigned to Bethesda.
Why Is Ninja Theory Being Shut Down?
Perhaps the most painful cut: Ninja Theory, the studio behind Hellblade: Senua’s Sacrifice, Hellblade 2, DmC, and Heavenly Sword, is being completely closed down. According to reports, two separate rescue attempts had previously failed — so there were apparently efforts to preserve the studio before the decision to close it was made. For a team that gained international recognition for its portrayal of psychosis and mental health, this is a bitter end.
A total of 268 additional jobs will be eliminated, affecting not only Halo Studios but also other first-party studios, as well as management and central functions within Xbox Game Studios (XGS).
What Does This Mean for Players?
For Halo fans, this primarily means uncertainty: Whether and how the series' tone and gameplay will change under a new development team at Activision is completely open. For Ninja Theory players, the situation is clearer but not brighter — without an active studio, there will likely be no new Hellblade and probably no major updates for existing games. Those who had Sea of Thieves or Banjo-Kazooie successors in mind must also keep an eye on Rare's new reporting structure.
How Does the Editorial Team Assess This Development?
From our perspective, this step shows how profound the transformation at Xbox has become: It's no longer just about individual layoff waves, but a complete reorganization of the first-party landscape, where long-standing brands like Halo are effectively moving into other hands. The fact that our earlier report on this morning's rumor became confirmed reality within a few hours also shows how quickly this restructuring is now taking place. We will stay on top of this and update as soon as new details emerge.
Source: Xbox Wire, Eurogamer, PC Gamer
What do you think about the Xbox transformation — the end of an era or an overdue cut? Share your thoughts in the comments!
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