Official: XBOX to lay off 268 employees, and Ninja Theory faces potential closure

Microsoft Corporation has indeed announced new changes within its gaming division. Nearly three hundred employees will be affected by these layoffs.

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According to a statement by XBOX Content Director Matt Booty, the layoffs will take place at Halo Studios and several other studios — the full list has not been disclosed. They will also affect the management tier of XBOX and the central office.

Layoffs are not the only changes Microsoft is implementing. Certain XBOX subsidiary studios are set for reorganization:

• Obsidian will now become part of Bethesda;
• the Microsoft Casual Game division, which works on games like Minesweeper and Solitaire Collection, will be incorporated into King;
• Playground Games and Turn 10 Studios will merge into one studio;
• studios Rare and World’s Edge will work under the wing of Activision;
• moreover, Activision will spearhead the future development of the Halo franchise — a special team will be formed for this purpose. A small part of Halo Studios will continue supporting existing projects.

Booty added that Microsoft has yet to find a buyer for Ninja Theory — two deals have already fallen through to date. In light of this, the corporation has begun negotiations about closing Ninja Theory, though it hopes to avoid such an outcome.

The fate of Arkane Lyon remains uncertain. Consultations regarding its separation from Microsoft are expected to continue until the end of the year.