The news anticipated by this morning's rumor has officially arrived, with new and heavy changes within XBOX. With a message sent to all employees of the team globally and signed by Matt Booty, the division announced the elimination of 268 positions, a profound reorganization of the first party studios and some updates on the divestitures of studios started in recent months, all as part of the XBOX reset started at the beginning of the year.

The most significant reorganization concerns the structure of the studios, which will be grouped into a smaller number of business units. The goal, it reads, is "to strengthen our franchises and games by operating with fewer business units, aligning groups that already work closely together and concentrating our publishing skills". To come out with a decidedly larger role is Activision, which will welcome World's Edge (authors of the "Age of" franchise) and Rare under its wing, but above all will take care of the development of the next chapter of Halo.

Working on Halo will be a brand new team, built specifically for this purpose and kept separate from other ongoing developments and plans related to Call of Duty. Halo Studios, for its part, will maintain a small team dedicated to supporting the Halo community and the titles already available on the market.

Bethesda is also expanding its perimeter, incorporating Obsidian. The studio will continue with the projects currently in the works, including Grounded, as well as the new Fallout project created in collaboration with Bethesda Game Studios. King, on the other hand, will welcome Microsoft Casual Games, creating a union between what the message defines as "our two global leaders in casual game design and live operations".

Important change also for two historic names in the racing world and beyond: Playground and Turn 10 will become a single studio, focused on the Forza and Fable franchises. A choice that, according to the communication, does nothing but formalize an already consolidated relationship, given that the two teams have been "creative and franchise partners for over a decade" and with today's changes their work will "formally merge into a single team".

Coming to the layoffs, the 268 eliminated roles affect Halo Studios, other first party studios and the managerial level and central functions of XBOX Game Studios. Also considering the divestitures of the studios, the actions completed from July to date bring XBOX to about three-quarters of the previously announced restructuring path . "I am deeply grateful for what our colleagues have built, and I know how difficult today will be for those leaving the company and for the teams around them," the message reads.

Conflicting news arrives precisely on the sales front. In August, Compulsion and Double Fine returned to the hands of their management, bringing with them their respective IPs, catalogs and funds necessary to continue the business. With similar conditions, the transition of Undead Labs has now also been completed , which thanks to a new publisher will publish State of Decay 3 on day one on XBOX Game Pass. Different and unexpected, however, the fate of Ninja Theory: "unfortunately, two separate agreements" for the studio have faded, and XBOX will therefore start a consultation with employees regarding a closure proposal, while continuing to evaluate alternative paths. On the other hand, the consultation with Arkane remains ongoing, which should continue until the end of the year.

In closing, the message invites us to put the people involved at the center: "today our attention must be focused on supporting those affected and treating each other with care and respect". Visits to the studios are planned for the coming week, while on October 6 there will be a town hall where the entire XBOX team will gather to take stock of progress and look forward to what is described as "one of the strongest line-ups of games in our history".

We will keep you updated on developments as always: keep following us!