Microsoft has announced a massive restructuring of its Xbox gaming division, with Activision taking a much larger role across some of the company's biggest franchises, including Halo, Sea of Thieves and Age of Empires.
The shake-up comes alongside another round of layoffs, with Microsoft eliminating 268 roles across Halo Studios, other first-party studios, and Xbox Game Studios management and central teams.
One of the biggest changes involves Halo.
Activision will develop the next Halo game through a newly created, purpose-built team, separate from the teams currently working on Call of Duty.
Halo Studios, formerly known as 343 Industries, will continue to exist with a smaller team focused on supporting the Halo community and games already on the market.
That includes ongoing support for existing Halo projects such as Halo Infinite, while Activision takes responsibility for the franchise's next major installment.
Activision Is Taking a Much Bigger Role Inside Xbox
Halo is not the only major Xbox franchise affected by the restructuring.
Microsoft has confirmed that Rare and World's Edge will now fall under Activision's remit. Rare is the studio behind Sea of Thieves, while World's Edge oversees the Age of Empires franchise.
The move effectively gives Activision a significantly broader role within Microsoft's gaming organization, extending its influence well beyond Call of Duty and its traditional portfolio.
Microsoft says the goal is to operate fewer individual business units, bring together teams that already work closely with one another and make better use of its publishing expertise.
The restructuring also affects several other major Xbox studios.
Obsidian Entertainment will now fall under Bethesda's remit. The studio will continue working on its existing projects, including Grounded, while also collaborating with Bethesda Game Studios on a new Fallout project.
Microsoft is also combining Turn 10 Studios and Playground Games into a single studio.
The two teams have worked together on the Forza franchise for more than a decade, but will now formally operate as one organization focused on Forza and Fable.
Playground Games is best known for developing the Forza Horizon series and is currently responsible for Fable, while Turn 10 has traditionally developed the Forza Motorsport games.
Microsoft's casual gaming division is changing hands as well.
King, the studio behind Candy Crush, will expand its responsibilities to include Microsoft Casual Games. That means classic Windows titles and services associated with games such as Solitaire, Mahjong and Minesweeper will now sit under the same organization as one of the world's largest mobile gaming businesses.
The changes are part of Microsoft's wider Xbox restructuring announced earlier this year. According to Xbox chief content officer Matt Booty, the company is now roughly three-quarters of the way through the previously announced restructuring process.
For Xbox, however, the biggest symbolic change is undoubtedly Halo. One of Microsoft's most recognizable gaming franchises will now have its next major installment developed by a dedicated team within Activision, marking one of the most significant changes in the series' history.
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