“It genuinely breaks my heart”- Confusion and frustration reign as gaming communities react to Xbox’s drastic restructuring this week
eurogamer.net Sep 25, 2026

“It genuinely breaks my heart”- Confusion and frustration reign as gaming communities react to Xbox’s drastic restructuring this week

AI-summarised brief · reviewed before publication

Xbox announced a wave of layoffs that includes the closure of Ninja Theory, the studio behind the Hellblade series, and cuts that have effectively dismantled Halo Studios and halved World’s Edge, the Age of Empires developer. At the same time, Microsoft restructured studio oversight, moving Obsidian under Bethesda and shifting Rare, World’s Edge and Halo to Activision’s publishing umbrella. The community reaction has been one of shock and grief, especially after Ninja Theory’s recent reveal of Hellblade III, Senua, prompting accusations that the timing was intended to boost the studio’s sale value. Fans also fear Activision’s track record with Call of Duty could lead to more aggressive monetisation of franchises, while uncertainty surrounds Obsidian’s creative freedom beyond its upcoming Fallout title.

💡 Why It Matters

  • · Fans worry the new Activision oversight could reshape beloved non‑shooter franchises into revenue‑driven products, threatening the artistic direction that defined many of Xbox’s acquired studios.