Microsoft merges Forza Horizon and Turn 10 studios amid staff reductions

Microsoft disclosed on Tuesday that it is consolidating its two internal studios behind the Forza racing franchise. In a memo to Xbox employees posted on Xbox Wire, Chief Content Officer Matt Booty said Playground Games, the developer of the Forza Horizon series, and Turn 10 Studios, responsible for Forza Motorsport, will merge into one studio that will focus on the Forza and Fable franchises. The reorganization includes the elimination of 268 roles across several first-party teams.

Booty wrote that the two studios have been creative partners for more than a decade and that the change will formally bring their work under a single team. According to a later statement from Xbox, Playground Games head Trevor Williams will continue to lead the combined studio, indicating that Turn 10 will cease to exist as a separate entity.

The move follows a series of layoffs at Microsoft’s gaming division earlier this year. Turn 10 had already reduced staff in July 2025, and a December announcement indicated that the 2023 Forza Motorsport reboot would no longer receive updates. Remaining Turn 10 staff have been assisting Playground Games with the development and support of Forza Horizon 6, which launched in May.

Industry observers note that the consolidation likely signals the end of the Forza Motorsport series as a distinct product line, with future resources being directed toward the open-world Forza Horizon titles and the upcoming Fable franchise.