Xbox Cuts 268 More Jobs, Merges Obsidian, Shifts Halo to Activision

Did you think Xbox's rough year was over? Not quite. The company just announced another round of layoffs, and it's shaking up its studios in a big way.

According to Xbox, 268 more employees are being let go. That's on top of previous cuts, and it brings the company "roughly three-quarters of the way" to its planned total of 3,200 job cuts. Yeah, you read that right—3,200. That's a lot of people, and it's a stark reminder of the turbulence hitting the gaming industry right now.

But that's not all. In a major organizational shift, Obsidian Entertainment—the studio behind Fallout: New Vegas, The Outer Worlds, and Pentiment—is being merged into Bethesda. If you're a fan of Obsidian's RPGs, this might raise an eyebrow. Bethesda and Obsidian have history, and now they're under the same roof. What does that mean for future projects? We don't know yet, but it's a big change.

And if that wasn't enough, Activision is now in charge of Halo. Yes, the iconic Xbox franchise is being overseen by the Call of Duty publisher. That's a huge shift for Master Chief and company. Halo has always been Xbox's flagship, so handing the reins to Activision is a bold move—and one that's sure to spark plenty of debate among fans.

These changes come as part of Xbox's broader restructuring efforts. The company is clearly trying to streamline operations and cut costs, but the human impact is real. 268 more people are out of work, and that's never easy to hear.

For players, the big question is: what happens next? Will Obsidian's unique voice survive under Bethesda? Can Activision give Halo the shot in the arm it needs? And will these cuts affect the games we love? Only time will tell, but it's clear Xbox is in a period of major transition.

What do you think about these moves? Are you worried about Obsidian or Halo? Let us know in the comments.