Halo to Activision. Xbox merges studios and cuts 268 jobs

Xbox has reorganized its studio business, with several developers now reporting into either Bethesda or Activision Blizzard.

Meanwhile, Hellblade developer Ninja Theory faces closure after two buyout talks fell through.

Halo will now be entirely led by Call of Duty publisher Activision. Halo Studios will continue to support existing in-market projects, while a new purpose-built team will make the next Halo game.

Sea of Thieves developer Rare and Age of Empires division World’s Edge will also report to Activision.

Developer Obsidian will report directly to Bethesda. Obsidian is already working on a new Fallout game for the publisher.

Forza Motorsport developer Turn10 will be folded into Forza Horizon studio Playground Games.

Undead Labs will now become an independent studio, with an unnamed publisher handling the release of State of Decay 3. The game will continue to be released in Game Pass on day one.