Which Xbox Game Studios companies remain active after the latest layoffs?

In another bad week for game industry layoffs, Xbox has gutted its developers, with multiple studios affected.

Some major players have been restructured, while others have been merged into the surviving ones.

So, if you're curious where things stand when the dust has settled, here's what you need to know about the state of Xbox Game Studios.

After the recent layoffs, the following Xbox Game Studios are active:

• The Coalition (Gears of War)
• inXile Entertainment (Wasteland, Clockwork Revolution)
• Playground Games (Fable, Forza Horizon)

It should be noted that there are several Microsoft-owned studios that remain active, but are not included under the Xbox Game Studios banner, including:

• Bethesda
• Activision
• Blizzard
• King
• Mojang

These five studios, along with the three remaining Xbox Game Studios, will take on some of the developers and projects that were previously under the remit of the closed studios.

As for the rest of them…

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Halo Studios

Halo Studios, formerly 343 Industries, has perhaps been hit the hardest by Xbox's layoffs.

A plurality of the job losses have reportedly come from Halo Studios only a few months after the release of Halo: Campaign Evolved.

The Halo franchise, as well as the remaining developers, have been absorbed into Activision, which will work on its own Halo game, with the former Halo Studios staff supporting on development for this and other Activision titles.

Obsidian Entertainment

After releasing Avowed, The Outer Worlds 2, and Grounded 2 into early access, Obsidian Entertainment is set to be incorporated into Bethesda.

With the studio reportedly at work on a new Fallout game – potentially a remake of Fallout: New Vegas – it seems like the most apt solution for the studio.

Though what this means for the future of Pillars or Eternity, or more off-the-wall projects such as Pentiment remains to be seen.

Turn 10 Studios

Turn 10 had previously been the home of the Forza Motorsport series, separate from the Forza Horizon series.

The last game in the series, a Forza Motorsport reboot, was released in 2023, with the studio moving to support development of Forza Horizon 6.

After being hit hard by the July 2025 round of layoffs, it feels like it was an inevitability that the studio would eventually be merged with Playground Games, which has now been confirmed.

Rare

Rare is reportedly moving under the Activision banner, but what this actually means for the studio is unknown.

After the cancellation of Everwild last year, the studio was hit with layoffs, leaving them to continue work on Sea of Thieves.

Perhaps Xbox is eyeing up a Banjo-Kazooie reboot? For now, we don't know what the future holds for Rare.

World's Edge

The developer of the Age of Empires series hasn't been mentioned very much in recent layoffs, but it has been confirmed that the studio will also move under Activision management.

It doesn't seem as if the studio has been massively impacted by the layoffs, to our knowledge, and Age of Empires development will seemingly continue as normal.

Ninja Theory

Xbox confirmed earlier this year that it was in talks to sell Ninja Theory as an alternative to shutting it down.

The Hellblade developer has since had two separate deals fall through, and Xbox is now briefing the team on their options, including potential closure.

A third Hellblade game was reportedly in the works, but the fate of that title is now up in the air.

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