Earlier today, rumours starting doing the rounds that layoffs were incoming at Xbox, and it's now been confirmed that 286 roles are being eliminated across "Halo Studios, other first-party studios, and the XGS management and central functions layer".

All of this is part of the 3,200 job cuts that were announced back in July, of which only 1,600 took place at that time.

Xbox is also restructuring its studios going forward, with four major changes taking place in this area - Activision is getting involved with Halo, Rare and World's Edge, Obsidian is joining forces with Bethesda, King is adding Microsoft Casual Games into its focus, and Forza developers Playground and Turn 10 are also combining into one.

Here's what Xbox says about each of these:

  • Activision will expand its remit to World’s Edge, as well as Rare. Activision will also be developing the next Halo title, led by a new, purpose-built team that is separate from ongoing development and plans for Call of Duty. A small team at Halo Studios will continue supporting the Halo community and games in-market.
  • Bethesda will expand its remit to include Obsidian, which will continue its current projects, including Grounded, as well as the new Fallout project made in collaboration with Bethesda Game Studios.
  • King will expand its remit to include Microsoft Casual Games, uniting our two global leaders in casual game design and live operations.
  • Playground and Turn 10 will come together as one studio focused on the Forza and Fable franchises. These two studios have been creative and franchise partners for over a decade, and today’s changes will formally move their work into one team.

Finally, it's been confirmed that Undead Labs will still release State of Decay 3 on Xbox Game Pass at launch despite now being an independent company, but the situation around Ninja Theory seems much more dire, with "two separate agreements" having fallen through for that studio. Xbox is now starting to "begin consultation with employees on a proposed closure" of Ninja Theory, but is also "exploring other paths forward".

We'll leave you with some direct quotes from Xbox's Matt Booty that have been shared today:

"First, we are eliminating 268 roles across Halo Studios, other first-party studios, and the XGS management and central functions layer. The actions completed since July, inclusive of the studio divestitures, bring us roughly three-quarters of the way through previously announced restructuring. I am deeply grateful for what our colleagues have built, and I know how difficult today will be for those leaving and the teams around them."

"Second, we are reorganizing our studios. The goal is to strengthen our franchises and games by operating fewer business units, aligning groups that already work closely together, and focusing our publishing expertise."Today, our focus should be on supporting those affected and treating one another with care and respect."

"I will spend time with our studios over the next week. At our October 6 town hall, we will come together as an ALL-XBOX team to reflect on our progress and look ahead to one of the strongest game lineups in our history."

What are your thoughts on this? Let us know down in the comments section below.

[source news.xbox.com]