The profound reorganization of XBOX announced in the summer months seems ready to enter its second phase. According to reports from The Information, hundreds of employees should be laid off as early as this week, while more studios will be merged with each other. To make the picture even more interesting is the insider NateTheHate, according to which some franchises and teams will change location within Microsoft, with Halo even ending up under the responsibility of Activision Blizzard.

To understand the extent of what is happening, we need to take a step back. This summer Asha Sharma had presented what she herself had called "the most important restructuring in the history of XBOX", a plan that envisaged about 3,200 total cuts during the fiscal year: of these, a first tranche of 1,600 layoffs has already been carried out, with another 1,600 or so to be distributed in the following months. The same announcement also talked about the return to independence of Compulsion Games and Double Fine, and the passage of Ninja Theory and Undead Labs under new ownership. Microsoft had also stated that it wanted to drastically reduce management levels, pool a greater number of services and focus on a decidedly more integrated structure.

It is precisely the second tranche of cuts that, according to The Information's source, a person informed of the company's plans, would be about to materialize. It should therefore be clarified that these would not be additional layoffs to the 3,200 already announced: Sharma had in fact anticipated the second wave of 1,600 jobs, without however providing any details on who and what would be involved, an aspect that has remained the subject of speculation since then. Even on the front of the consolidation of the studios there are still no precise indications, neither on which teams will be merged nor on the form that the operation will take, although the general idea seems to be to merge some smaller realities under larger labels, which would absorb their projects and staff.

For now there is no official information on the matter from Microsoft, but knowing the importance that Asha Sharma attributes to clarity in her division, it is possible that, now that the information has been leaked, she wants to clarify as soon as possible with an official statement.

Also according to The Information, the move would be part of Sharma's strategy to improve XBOX's margins and focus investments on the most important franchises, such as The Elder Scrolls and Fallout, while reducing the weight of the minor studios acquired in recent years. We also know that several chapters of Fallout are in development, including Fallout 5.

Now let's come to Halo. Commenting on the news on ResetEra, NateTheHate claimed that the series will pass under the wing of Activision Blizzard, but immediately specified that he was referring to the franchise and not to Halo Studios. A distinction that is far from secondary: the insider did not say that the team will become an Activision studio, and at the moment it is not clear what its fate will be. Asked about the extent of the reorganization, NateTheHate then added that "it will not only be Halo that will go under ABK. Other studios will move to different realities within XBOX / Microsoft", without however naming further names. It is worth remembering that in August the rumor of a multiplayer Halo in development at Activision had circulated.

There is no shortage of other rumors. One of these would like the Call of Duty studios to be merged, with a consequent reduction in their overall presence: however, this is a completely unconfirmed rumor, therefore to be taken with extreme caution. Jason Schreier, on the other hand, during a recent podcast, hinted that Blizzard would also be close to being laid off, a prediction based largely on conversations he had at BlizzCon, which was held earlier this month.

It should be reiterated that none of this information has been confirmed by Microsoft at the moment. However, if what was reported by The Information turns out to be correct, we will not have to wait long to find out more, since the new wave of cuts is expected in these days. It remains to be seen which teams will be involved in the reorganization and what the passage of an important series like Halo under Activision Blizzard would concretely entail.