The Xbox reset continues, with another round of cuts leaving the future of Game Pass and the Xbox platform in doubt. Layoffs have become a regular occurrence, with major studios like Halo facing drastic changes. Some employees found the news a relief, while others were angered by the sudden changes.
The turmoil isn't limited to studio reorganization. Halo Studios, once a powerhouse, now has a reduced team handling only existing games. Rare, known for Sea of Thieves, is also moving under Activision's control. Even longstanding Microsoft franchises like Forza are merging into a single studio.
Analysts like Mat Piscatella are critical, deeming these cuts as more indicative of a broader restructuring aimed at making Xbox easier to spin off as a subsidiary. The goal appears to be achieving a massive user base—more than a billion people daily—but at what cost?
The reshuffling of franchises and studios suggests a strategy to release bigger games faster and at lower cost. However, the impact on employee morale and the long-term viability of Xbox as a brand is yet to be seen. Will this reset lead to a brighter future for gaming, or just a more fragmented one?







