Microsoft continues restructuring its gaming division and reducing its workforce. Following a major round of layoffs this summer that affected studios including id Software, as well as the departure of Double Fine, Ninja Theory, Compulsion Games, and Undead Labs from Xbox, Blizzard Entertainment and Halo Studios, formerly 343 Industries, could now be next.
According to journalists, Xbox is expected to lay off hundreds of employees this week and merge several of its studios. The restructuring could reportedly affect publishing divisions across Xbox Game Studios, Bethesda, Activision, and Blizzard. Some developers may also lose their jobs.
Blizzard is reportedly among the studios facing potential layoffs. The situation comes amid several major announcements from the company, including World of Warcraft: Forever, Diablo V, and a new StarCraft shooter.
Halo Studios could also face significant cuts. The team behind the iconic sci-fi franchise has not released a major hit in quite some time, while Halo: Campaign Evolved reportedly failed to deliver record results. Earlier reports suggested that Xbox was considering bringing in Call of Duty developers to work on a new Halo game.
Meanwhile, rumors about a potential closure of Arkane have been circulating for some time. The French studio is reportedly already in talks with Xbox about its future.
Microsoft completed its $68.7 billion acquisition of Activision Blizzard in 2023. It was the largest deal in gaming industry history. However, just three months after the acquisition was completed, Microsoft announced 1,900 layoffs across its gaming division, with Activision Blizzard taking a major share of the cuts. Since then, layoffs across Microsoft's gaming business have occurred almost every year.
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