Microsoft Xbox has made a drastic move, implementing a structural reorganization accompanied by massive layoffs and transferring its core IP 'Halo' under the umbrella of Activision.

Matt Booty, President of Game Content and Studios at Xbox, announced through an official statement on August 22 that a total of 268 employees from in-house development studios and central management departments will leave the company due to this measure. The most prominent aspect of this reorganization is the expansion of Activision Blizzard's authority.

In particular, Activision has taken the helm of the next installment in Xbox's flagship shooter franchise, the 'Halo' series. Future series projects will be led by a newly formed dedicated team rather than existing personnel, and this department will be operated separately, completely detached from the 'Call of Duty' development crew. The small staff remaining at the existing Halo Studios will focus solely on maintenance and user support for previously released titles.

Activision's influence extends to other in-house developers as well. World's Edge, dedicated to the 'Age of Empires' franchise, and Rare, responsible for creating 'Sea of Thieves', have both been incorporated under Activision. These studios will now be unified under a system where they report work progress directly to their parent organization, Activision.

Matt Booty shared feelings by stating, "I deeply appreciate the achievements made by our colleagues, and I painfully sympathize with how difficult today must be for those leaving the company and the remaining team members." Matt Booty added, "The goal of this reorganization is to further strengthen the franchises and games we hold through the reduction of business sectors, the establishment of close collaboration networks, and the concentration of publishing capabilities."