Back to news
technology

Major Restructuring at Xbox: Activision to Lead Halo Franchise

Microsoft is undergoing significant changes in its Xbox division, appointing Activision to oversee iconic franchises like Halo and Sea of Thieves. The restructuring comes alongside additional layoffs amidst previous job reductions.

10/16/2026, 10:15:45 AM

Microsoft is implementing sweeping changes in its Xbox studios, which includes assigning Activision to manage several prominent gaming franchises, including Halo and Sea of Thieves. This announcement follows a tough period for the company, during which it laid off 1,600 employees and sold multiple studios. The decision reflects a broader reorganization strategy aimed at revitalizing Xbox amid ongoing market challenges. Activision's role is set to expand beyond just these franchises, also encompassing Age of Empires, a series that has seen renewed interest and success recently. As part of this restructuring initiative, Microsoft is expected to lay off approximately 268 employees, further trimming its workforce in an effort to streamline operations. These layoffs come as Xbox aims to adapt to a competitive gaming landscape, where innovation and market responsiveness are crucial. The incorporation of Activision into leadership roles of these well-known franchises is seen as a means to leverage its experience in maintaining and growing successful game titles. Previously, Halo and Sea of Thieves were key components of Microsoft's gaming portfolio, and this move is aimed at ensuring their continued success under the new management structure. According to The Verge, the changes arrive at a time when many gaming companies are reassessing their strategies to remain competitive, especially in an ever-evolving digital landscape. As players eagerly anticipate new developments within these franchises, Microsoft hopes that the restructuring will yield positive outcomes and reinvigorate its offerings for gamers worldwide. Industry analysts will be closely monitoring the impact of these shifts, particularly how Activision will influence the development and direction of Halo and Sea of Thieves, two franchises that hold significant value for Xbox. The future paths of these games are now poised for dramatic changes under their new leadership.

Share