Microsoft is cutting 268 additional jobs within its Xbox division. This reduction follows a broader restructuring plan announced in July 2026. The company reports that the overall workforce reduction is now 75% complete.
The reorganization includes a significant consolidation of major game studios. A new team within Activision will lead development for the next Halo title. Rare and World’s Edge are also moving under the Activision banner. Obsidian Entertainment will now operate under Bethesda.
Microsoft shares showed a muted reaction to the announcement. However, some analysts attribute recent share weakness to the ongoing gaming reset.