Xbox has announced a sweeping overhaul of its first-party studios, with Activision taking charge of the next Halo game while Obsidian moves under Bethesda as it works on a new Fallout project.
The changes form part of Xbox’s ongoing “reset,” which will also see 268 more jobs cut, Rare and World’s Edge move under Activision, and Playground Games and Turn 10 combine into a single studio.
In a September 22 announcement, Xbox Chief Content Officer Matt Booty confirmed Activision will develop the next Halo title under a “purpose-built team that is separate from ongoing development for Call of Duty.”
“A small team at Halo Studios will continue supporting the Halo community and games in-market,” the statement continued.
Elsewhere, Obsidian Entertainment is being moved under Bethesda, where both will collaborate on a new Fallout title, while the former also continues its existing projects, including Grounded.
The restructuring goes considerably further. Rare and Age of Empires studio World’s Edge will also move under Activision, while Forza Motorsport developer Turn 10 is being combined with Forza Horizon and Fable studio Playground Games.
Undead Labs, meanwhile, has successfully left Xbox to become independent, retaining its IP and back catalog. State of Decay 3 will be released by another publisher but is still expected to launch on Game Pass on day one.
The future of Hellblade developer Ninja Theory remains less certain. Xbox said two attempts to divest the studio have fallen through, and consultation is now beginning over its proposed closure while alternatives continue to be explored.
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