Xbox announces a further 268 layoffs as Ninja Theory and Arkane remain on shaky ground

gamesradar.com Sep 23, 2026

Xbox announces a further 268 layoffs as Ninja Theory and Arkane remain on shaky ground

Curated by Shubham · TechCapsules · Sep 23, 2026

AI-summarised brief · reviewed before publication

Xbox announced a further 268 layoffs, bringing the company to roughly three‑quarters of its planned 3,200‑job reduction through FY27. Chief content officer Matt Booty said the cuts target Halo Studios, other first‑party studios, and Xbox Game Studios (XGS) management and central functions. The move follows a July round that cut 1,600 roles after CEO Asha Sharma launched the “most significant restructure in Xbox history” to restore growth and profitability. Recent studio changes include the separation of Compulsion Games and Double Fine, Undead Labs’ transition to a new publisher, and the collapse of two deals with Ninja Theory, prompting consultation on a possible closure. Arkane’s fate remains under consultation, while Obsidian now reports to Bethesda for a new Fallout title. The layoffs underscore Xbox’s ongoing “Reset” strategy.

💡 Why It Matters

· The cuts tighten Xbox’s focus on core franchises and could reshape its first‑party portfolio, influencing the future of high‑profile titles like Halo, Senua, and Marvel’s Blade.

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World of Warcraft fans are torn about whether Forever’s Skyborne starting zone…

Blizzard’s World of Warcraft: Forever beta has unveiled the new Skyborne race and its opening zone, Zephras Isle, sparking debate among Classic WoW fans. The “found photographs” concept presented at BlizzCon promised that any added content would feel like it could have existed in the original vanilla game. Critics argue the Skyborne questline breaks that premise by thrusting players into a high‑level elemental‑lord encounter before level 15, a threat traditionally reserved for end‑game raids such as Molten Core. Reddit users compare the dramatic, world‑saving narrative to the modest human starter quest that ends with a fight against Hogger. While other new quests have been praised for their low‑key storytelling, the Skyborne introduction is seen as a tonal mismatch that may foreshadow Blizzard’s future content direction. The full impact will become clearer when the complete release launches on 4 November.

💡 The controversy reveals how tightly the community guards the nostalgic identity of Classic WoW, and whether Blizzard can successfully blend fresh epic narratives with a legacy‑centric experience.

ign.com · Sep 23

Handing Halo to Activision Makes Business Sense, but Is That Enough To…

Xbox CEO Asha Sharma has transferred development of the next mainline Halo title to Activision, the studio behind Call of Duty and a core asset of Microsoft’s $69 billion acquisition. The move follows a series of layoffs at Halo Studios—formerly 343 Industries, which was rebranded less than a year ago—and a history of uneven critical reception for Halo 4, 5 and Infinite, attributed by insiders to management inefficiencies and reliance on contractors. Activision secured regulatory approval after navigating antitrust scrutiny, positioning its multi‑studio pipeline to deliver a blockbuster Halo entry on a tighter schedule. Sharma’s decision reflects a franchise‑first strategy, prioritizing timely delivery over internal development continuity, and signals a major shift in Microsoft’s flagship shooter stewardship.

💡 By handing Halo to Activision, Microsoft bets on proven production speed to revive a flagging franchise, potentially reshaping the competitive dynamics of first‑person shooters across console ecosystems.

ign.com · Sep 23

CONFIRMED: Microsoft Hands Halo to Call of Duty Developer Activision as Part…

Microsoft announced that Activision will develop the next mainline Halo title, following a major restructuring of Xbox studios that includes 268 layoffs, primarily at Halo Studios. The cuts are part of Xbox chief Asha Sharma’s “reset” after earlier reductions that saw 1,600 employees depart in the summer, bringing the company roughly three‑quarters through its announced overhaul. Halo Studios will be reduced to a small team that supports existing Halo products, while a new, purpose‑built group within Activision will handle the franchise, separate from Call of Duty development. Microsoft also placed Rare and World’s Edge under Activision’s umbrella and continued reshuffling other studios such as Obsidian, Turn 10 and King. No release date or series reboot details were provided, currently pending.

💡 Activision’s stewardship could inject the franchise with its proven annual‑release expertise, potentially reviving Halo’s waning momentum.

playstationlifestyle.net · Sep 22

Fun 2019 PS4 Action Game Delisted Without Notice, Players Upset

Squanch Games’ 2019 PlayStation 4 title Trover Saves the Universe was removed from the PlayStation Store and all digital storefronts this week without prior notice. The action‑platformer, known for its off‑beat humor, voice work by Rick and Morty co‑creator Justin Roiland, and optional PSVR mode, had maintained a Metacritic score of 76. No explanation was offered by the developer or publisher for the sudden delisting, prompting frustration among fans who can no longer purchase the game digitally. Physical copies remain available through retailers such as Amazon. The abrupt disappearance highlights the vulnerability of digital‑only titles to unexpected removal, even years after release. Players have taken to media, demanding transparency and fearing that licensing issues or disputes may have driven the decision.

💡 The silent pull exposes how quickly digital libraries can vanish, leaving owners and collectors without recourse.

eurogamer.net · Sep 22

Another Injustice 3 leak reveals two characters in the rumoured DC fighting…

A new Injustice title is confirmed after a stunt‑worker’s résumé revealed motion‑capture work for the unreleased game. Mackensi Emory’s CV listed Supergirl and Batwoman as characters he performed, confirming both will appear in the sequel. Supergirl’s inclusion aligns with her prominent role in Injustice 2, while Batwoman’s presence is unexpected because the character is dead in the series’ established canon. The roster addition suggests NetherRealm may reboot the storyline rather than continue the previous narrative. The résumé also named animator Jake Huang, a veteran of Mortal Kombat 1, as part of the development team. Although no official announcement or release window exists, the studio’s past cadence points to a possible 2027 launch, with a reveal possibly slated for the upcoming Game Awards.

💡 Introducing a dead‑canon hero forces the franchise to rewrite its continuity, offering fresh narrative angles and signaling a potential series reboot.

gamesradar.com · Sep 22

Activision prepares to “make the greatest Halo game ever” as it takes…

Xbox announced a reorganization of its first‑party studios, moving Rare and World's Edge under Activision Blizzard and assigning stewardship of the Halo franchise to the Call of Duty publisher. Halo, previously managed by 343 Industries (now Halo Studios) since Microsoft’s 2007 split from Bungie, will be developed by a formed team within Activision, while Halo Studios will shift to a support role and see staff reductions. Activision president Rob Kostich pledged to “make the greatest Halo game ever.” The restructure also places Bethesda in charge of Obsidian Entertainment and merges Playground Games with Turn 10 to shape the future of Forza, Fable and the ForzaTech engine. Matt Booty confirmed the new Halo team will operate separately from Call of Duty development.

💡 Placing Halo under Activision’s banner could fuse two of gaming’s biggest franchises, reshaping development pipelines and fan expectations for both series.