Xbox Lays Off 268 More Staff as Ninja Theory's Future Remains Uncertain

Xbox announced layoffs of 268 employees as part of its ongoing "reset" of teams and organizational structure. The cuts primarily affected Halo Studios and various management layers within Xbox Game Studios.

The company is consolidating several studios and intellectual property. Halo is being brought under Activision's purview as part of the reorganization. Xbox also provided updates on studios it announced cuts for earlier this year. Compulsion Games and Double Fine have spun off as independent studios, and Undead Labs has completed its transition to independence while continuing work on State of Decay 3.

The situation is more precarious for Ninja Theory and Arkane Studios. According to a memo from Xbox Game Pass head Matt Booty, "two separate agreements for Ninja Theory fell through." Xbox will now begin consultation with Ninja Theory employees on a proposed closure while exploring other options.

The proposed closure raises questions about the studio's unannounced projects. Senua, revealed as tied to Ninja Theory, faces uncertain development prospects if the studio closes. The fate of Ninja Theory's intellectual property also remains unclear.

Arkane Studios faces ongoing consultation regarding its future. Booty noted that discussions with Arkane are "expected to continue through the end of the year." The IP owned by Arkane Studios is similarly uncertain as potential solutions like a management buyout do not appear viable.