Activision to develop the next Halo as Xbox announces further job cuts

Xbox has announced 268 further job cuts and sweeping changes to Halo production. Activision, the publisher of Call of Duty, will develop future new games in the franchise.

Halo Studios will focus on supporting its community and existing games rather than a new release. Activision president Rob Kostich said the company had already begun assembling a purpose-built team for the next instalment.

Activision expands its Xbox remit

Alongside Halo, Activision will manage World's Edge, home of the Age of Empires franchise, as well as Rare and its Sea of Thieves series. Xbox is also expanding Bethesda's remit to include Obsidian, the studio behind Fallout: New Vegas, and combining the teams responsible for Forza Horizon and Fable.

Kostich said Activision's goal was to make the greatest Halo game while preserving what players loved about the series. Christopher Dring, editor-in-chief of The Game Business, said the move made sense but warned that Halo's distinct identity should not be lost.

Xbox layoffs and Ninja Theory's future

The latest cuts are part of Xbox's restructuring, after 1,600 jobs were eliminated immediately in July and 3,600 total losses were planned. The company said it was three quarters of the way through that programme.

Ninja Theory, known for the Hellblade series, could close after two potential buyer agreements fell through. Xbox chief content officer Matt Booty said employee consultation on a proposed closure would begin, although buyout discussions were continuing.

Of four other affected studios, three have returned to management, while consultation concerning Arcane remains under way.