Microsoft's Xbox gaming division announced layoffs affecting 268 employees in its first party studios. These reductions follow 1,600 roles cut in July. An Xbox executive stated these cuts represent about 75 percent of all planned payroll reductions, suggesting more layoffs are expected soon.
Xbox is also severely reorganizing its development structure for remaining employees. The popular Halo franchise will now be under Activision's control, with Halo Studios becoming a support studio. Developers World's Edge and Rare are also moving under Activision. Bethesda has incorporated Obsidian, and mobile game developer King is fusing with Microsoft Casual Games. Playground Games and Turn 10 will jointly manage the Fable and Forza franchises. Many of these partnerships formalize previous collaborations.