Xbox restructures studio management, triggers layoffs and community concern

Microsoft announced a second round of staff reductions at Xbox, including the planned shutdown of Ninja Theory, the studio behind the Hellblade series. The restructuring also moved the management of several other studios: Obsidian was placed under Bethesda, while Rare, World's Edge and the Halo team were transferred to Activision's publishing umbrella.

Community reactions have been mixed. On the Hellblade subreddit, users lamented the closure, questioning why the studio was showcased at a recent Xbox event only to be closed shortly thereafter. Some commenters suggested the move signals a shift away from niche, artistic titles toward projects with higher commercial expectations.

Obsidian has not issued a public statement since the transition, but Bethesda pledged to preserve the studio's creative identity. Fans of The Outer Worlds and Grounded discussed the likelihood that existing projects will continue, noting that Xbox indicated Obsidian will maintain its current development slate.

The merger of Forza developers Playground Games and Turn 10 drew limited attention, with some forum members speculating that Turn 10's role may be reduced to supporting Horizon expansions.

World's Edge, responsible for Age of Empires, faced significant layoffs, prompting concerns about ongoing support for Age of Empires II: Definitive Edition. Rare, now under Activision, has not reported major staff cuts, but community members expressed apprehension about potential changes to Sea of Thieves and the possibility of increased monetisation.

Overall, the restructuring has sparked uncertainty across multiple gaming communities regarding the future of their favourite franchises and the degree of creative autonomy the studios will retain under new oversight.