Xbox moves Rare and Halo franchises to Activision, plans to close Ninja Theory and cuts 268 jobs
Xbox announced that Rare and the Halo franchise will be transferred to Activision, that Ninja Theory will enter a closure consultation, and that 268 positions are being eliminated across Halo Studios and other Xbox Game Studios units as part of a broader restructuring.
Xbox said in an Xbox Wire post that ownership of the Rare studio and the Halo franchise will be transferred to Activision, which will also take on the Age of Empires studio World's Edge. The company confirmed that a consultation process has begun on the proposed closure of Ninja Theory after two attempted sales fell through.
"Unfortunately, two separate agreements for Ninja Theory fell through. We will now begin consultation with employees on a proposed closure while continuing to explore other paths forward," the post read.
The announcement also detailed a reduction of 268 roles across Halo Studios, other first-party studios and Xbox Game Studios management functions. A new, purpose-built team separate from Call of Duty will lead development of the next Halo title, while a small Halo Studios team will continue to support existing Halo games and the community.
Other restructuring moves include expanding Bethesda’s remit to cover Obsidian, which will keep working on Grounded and a forthcoming Fallout sequel, and merging Playground and Turn 10 into a single studio focused on the Forza and Fable franchises. Undead Labs will leave Xbox under terms similar to those used for Double Fine and Compulsion Games and will release State of Decay 3 with a new publisher.
The changes are part of a restructuring plan described by CEO Asha Sharma as a “resetting of the business,” with the company aiming to cut about 3,200 jobs this year and indicating that roughly three-quarters of that target have been reached.