Microsoft Shifts Halo and Rare to Activision, Cuts 268 Roles in Xbox Reshuffle

Microsoft has initiated a major operational overhaul across its gaming unit, transferring management of the flagship Halo franchise and developer Rare to Activision, while preparing to shutter Ninja Theory.

The reorganization also eliminates 268 jobs and implements substantial workforce reductions at Halo Studios, according to details published by GamesIndustry.biz following a company post on Xbox Wire.

Moving Rare and Halo under Activision marks a notable consolidation of Microsoft's studio hierarchy. After completing its acquisition of Activision Blizzard, Microsoft is increasingly leveraging the publisher's existing pipeline and infrastructure to oversee its core intellectual properties.

The proposed closure of UK-based Ninja Theory represents a stark reversal for the studio behind the Hellblade series, which Microsoft brought into its first-party stable during a wave of studio acquisitions in 2018.

As Hollywood Tomorrow notes, the realignment illustrates the intense efficiency drive reshaping interactive entertainment, as major platform holders move away from autonomous development outposts in favor of centralized publishing engines.

The newly confirmed cuts at Halo Studios and related teams follow previous rounds of contraction at Microsoft, where leadership continues to trim headcount and consolidate assets in an effort to contain rising development budgets.