By Stephen Totilo
Publication Date: 2026-09-22 14:04:00
The radical transformation of Microsoft’s gaming business is continuing today with another wave of layoffs, a rearrangement of its studios, an increased risk of one closing, and a massive change to its Halo franchise, all announced by Microsoft in a post today.
The cuts: 268 workers, mostly from Microsoft’s Halo Studios (former 343 Industries), which recently released Halo: Campaign Evolved. Those cuts also include people from Xbox Games Studio management. The cuts are part of the 3,200 announced in July, half of which had been implemented then.
The potential studio closure: In July, Microsoft said it had a deal in the works to sell Ninja Theory, the UK-based studio behind the Hellblade games, to a buyer it didn’t identify. That deal has fallen through, Microsoft said, as has a subsequent one, leaving the studio at risk of shutting down. Microsoft is beginning a consultation process that could lead to such a move (Microsoft…
