Xbox’s ‘reset’: all the news about Microsoft’s layoffs and studio changes – The Verge

Xbox is barely Xbox anymore

2026-09-22T13:08:15-04:00

Xbox has become a shell of its former self - and things are only getting worse. As part of its planned cuts impacting around 3,200 workers, the company announced today more changes that will further dilute the brand. Studios are being consolidated, others are on the brink of being closed altogether, and Xbox's most iconic franchise, Halo, is being moved to a new developer. The future of Xbox looks more uncertain than ever.

Today's news includes "eliminating 268 roles across Halo Studios, other first-party studios, and the [Xbox Game Studios] management and central functions layer." But there is also plenty of reorganization happening, parti …

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Xbox is merging its Forza developers into a single studio

2026-09-22T11:47:45-04:00

Microsoft is uniting its two Forza developers into a single studio today, as part of a massive restructuring of Xbox. Playground Games, which develops Forza Horizon, and Turn 10 Studios, creators of Forza Motorsport, are merging together to focus on Forza Horizon and Fable.

"Playground and Turn 10 will come together as one studio focused on the Forza and Fable franchises," explains Xbox chief content officer Matt Booty in a memo. "These two studios have been technological, creative, and franchise partners for over a decade, and today's changes will formally move their work into one team."

The closure of Turn 10 Studios leaves big unanswere …

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Microsoft is laying off 268 Xbox staffers and Ninja Theory may close

2026-09-22T11:47:17-04:00

Microsoft is laying off around 260 Xbox employees today, as part of an ongoing "reset" of its gaming business. 1,600 Xbox employees were impacted by layoffs in July, with Xbox CEO Asha Sharma describing the cuts as "the most significant restructure in Xbox history." Today's layoffs are part of the 3,200 roles that were previously confirmed to be impacted over the course of Microsoft's 2027 financial year (which ends in June 2027).

"We are eliminating 268 roles across Halo Studios, other first-party studios, and the XGS management and central functions layer," says Xbox chief content officer Matt Booty in a memo. "The actions completed since …

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Activision is taking over Halo as part of a massive Xbox shake-up

2026-09-22T11:47:38-04:00

Microsoft is announcing a massive restructuring of its Xbox studios today, months after laying off 1,600 Xbox employees and selling off studios. The latest changes will see Activision take on the Halo and Sea of Thieves franchises, as well as Age of Empires. Microsoft is also laying off around 268 Xbox employees as part of this restructuring, and likely closing Ninja Theory.

Halo Studios will be significantly impacted by today's changes and layoffs. The studio will continue to support existing titles like Halo Infinite and Halo: Campaign Evolved, but the next flagship installment in the Halo franchise will come from Activision instead.

"Ac …

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Xbox CEO calls Project Helix a ‘family of devices’

2026-08-28T18:39:11-04:00

Asha Sharma. | Image: The Verge, Microsoft

According to Xbox CEO Asha Sharma, Project Helix, which she announced in March as a codename for Microsoft's "next generation console" - phrasing that seemingly implied a singular device - will actually be a "family" of devices."

"We've been hard at work on a great next generation and a great family of devices for Helix, and we'll share more soon," Sharma told BBC News. She shared the answer after being asked if Helix will be a discless console. She didn't answer that, but this week Microsoft announced a program for digitizing your physical games.

In 2025, Microsoft and AMD announced a "strategic multi-year partnership" to work together on …

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The next Xbox could play every Xbox game ever made

2026-08-04T12:25:45-04:00

The next Xbox, Project Helix, could theoretically have the largest library of any home console. Not only will it play PC games, but we now know, courtesy of a leaked memo obtained by The Verge's Tom Warren, that it will run games from every generation of Xbox: the original 2001 Xbox, the 2005 Xbox 360, the 2013 Xbox One, and the 2020 Xbox Series, as well as any new Helix titles.

We already knew that Microsoft was bringing a limited sample of original Xbox games to PC, and we already knew it was prepping a way to digitize your Xbox One and Xbox Series discs. The leak fills in the missing puzzle pieces.

Microsoft is bringing Xbox 360 games …

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Xbox CEO lays out priorities in memo after major ‘reset’

2026-07-31T05:28:15-04:00

Asha Sharma. | Image: The Verge, Microsoft

After a massive Xbox "reset" that laid off thousands of employees and spun off four studios, Xbox CEO Asha Sharma wants to get Xbox back to growth. In a memo obtained by The Verge, Sharma told staff by the end of fiscal year 2027 (which runs through next June), "we will return XBOX to player and revenue growth." Xbox will also "improve profits back in line with industry averages," Sharma said. "Every function and studio will own part of that outcome."

Since taking over Xbox in February, Sharma has made sweeping changes to attempt to turn things around. Previously, she has cited challenges like a low accountability margin, increasing compone …

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Xbox revenue drops 10 percent as Microsoft’s cloud and AI business surges

2026-07-30T05:39:42-04:00

Xbox is having yet another tough quarter, as revenue from content and services like its Game Pass subscription dipped 10 percent over the past few months. At the same time, Xbox hardware sales declined 13 percent, according to Microsoft's fourth-quarter earnings report released on Wednesday.

The news comes just weeks after Xbox head Asha Sharma announced a "reset" plan for Xbox that included sweeping layoffs and the spinoff of four games studios, including South of Midnight developer Compulsion Games and Psychonauts creator Double Fine Productions.

Sharma has also made some other big changes to Xbox, including lowering Game Pass prices, te …

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Bethesda teases Fallout 5 soon after Xbox’s mass layoffs

2026-07-17T11:30:07-04:00

The Fallout TV series. | Image: Amazon

Xbox is currently in a "reset" period that includes laying off around 3,200 employees over the next year, involving deep cuts at beloved studios like id Software and Obsidian Entertainment. Now, in an attempt to show that things are still running fine, the company has announced a slate of upcoming projects at Bethesda Game Studios - which itself was hit with layoffs - including official confirmation that Fallout 5 is in the works.

"We're investing more deeply in the worlds players love, giving creators a bigger role in shaping their experiences, and bringing our teams closer together so we can get our games into your hands sooner, support t …

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Doom’s new expansion shows just what makes id Software special

2026-07-10T14:17:25-04:00

This week should have been a celebration for Doom developer id Software. The studio just launched Revelations, a meaty expansion for Doom: The Dark Ages that adds a powerful new weapon and more demonic levels to blast through. Even though I hadn't picked up The Dark Ages for more than a year, it only took moments before I fell right back into the familiar loop from id's modern Doom games. Each plays differently, but they all have a similar foundation built around fast-paced shooter action that makes them feel iconically Doom - and unlike pretty much anything else.

But instead the launch has been overshadowed. As part of Xbox's mass layoffs …

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