Microsoft Restructures Xbox, Hands Halo Franchise to Activision

Microsoft announced a sweeping reorganization of its Xbox studios, following the layoff of 1,600 employees and the sale of several studios. The new plan assigns Activision to manage the Halo, Sea of Thieves, and Age of Empires franchises. Microsoft will also cut about 268 more Xbox staff and is expected to close Ninja Theory. Halo Studios will remain to support current releases such as Halo Infinite and Halo: Campaign Evolved, but the next flagship Halo title will be developed by Activision. The shift signals a strategic pivot toward consolidating high‑profile IPs under a single publisher while trimming the Xbox studio footprint.