Xbox has shed five studios in the latest wave of layoffs, cutting roughly 3,200 staff members. While no studios have been shut down, five are divesting from Xbox, either going independent or being acquired. Xbox boss Asha Sharma has indicated a refocus on core franchises, aiming for a daily audience of over a billion people through Xbox services.
Remaining Studios and Their Projects
The Coalition, founded in 2010, continues with the Gears of War series. Its next project is prequel Gears of War: E-Day, launching this October. However, Gears of War hasn't been a big seller since the Xbox 360 era, and E-Day is rumored to have an extremely high budget unlikely to be recouped as an Xbox console exclusive. Last year's remaster of the original game didn't sell well on PlayStation 5, increasing reliance on Xbox nostalgia.
Halo Studios and Future Plans
Halo Studios (formerly 343 Industries) remains focused on Halo. The refresh begins with Halo: Campaign Evolved this month, a remake of the original story campaign, releasing on PlayStation 5. Pre-order numbers are strong, boosted by PlayStation owners' curiosity. Halo Studios has multiple projects in development, though exclusivity may limit reach. Recent layoffs may reallocate resources to Halo, pulling other studios into support roles.
inXile Entertainment and Obsidian
inXile Entertainment, acquired in 2018, has yet to release an Xbox-published game. That changes with Clockwork Revolution, an original action RPG scheduled for 2027, but as an Xbox console exclusive. Given inXile's niche titles, the game is unlikely to drive hardware sales. Xbox may leverage inXile for a Fallout spin-off or support Bethesda. Obsidian Entertainment has seen success with Grounded 2 but lost a quarter of its staff in layoffs. The Outer Worlds 2 and Avowed were sales failures. Obsidian may be relegated to support work on Fallout 5.
Playground Games and Rare
Playground Games is now Xbox's crown jewel, with Forza Horizon 6 boosting console sales. A PlayStation 5 port is expected this year. The studio is also developing next year's Fable reboot. Rare remains focused on Sea of Thieves, with no new games planned; a Banjo-Kazooie revival is unlikely.
Turn 10, World's Edge, and Mojang
Turn 10 Studios lost half its staff last year, ending the Forza Motorsport series; it now supports Forza Horizon. World's Edge continues Age of Empires expansions unaffected. Mojang, developer of Minecraft, reports directly to Sharma and is working on Minecraft Dungeons 2 and mobile game Minecraft Blast.
ZeniMax Media/Bethesda
Bethesda shifts focus to The Elder Scrolls and Fallout. New Quake, Doom, and Wolfenstein games are still planned. MachineGames works on Wolfenstein 3 and possibly a new Quake. id Software was hit by layoffs but may continue Doom. Arkane Lyon may leave Microsoft due to French labor laws; the fate of its Blade game is uncertain.
Activision Blizzard King
The $75.4 billion buyout of Activision Blizzard has led to multiformat moves and layoffs. Call of Duty continues, but day-one Game Pass releases have stopped. Blizzard supports Overwatch and Diablo 4 with no new games scheduled. King's Candy Crush remains Microsoft's mobile foothold, now under direct Sharma oversight. Layoffs at King saw staff replaced by AI tools.
