Microsoft has confirmed a major restructuring of its gaming division, resulting in 268 layoffs—largely impacting Halo Studios—and the transfer of the Halo franchise to Activision.
While a small team will remain at Halo Studios to support live games, a new, purpose-built team at Activision will helm the next mainline entry. The shakeup is part of a broader corporate reset aimed at streamlining operations across Microsoft’s various first-party studios.