Xbox Reshapes Halo, Obsidian Stays Distinct, Star Wars Hits 1M
Microsoft’s Xbox reorganization continues to reshape its first-party studios, with layoffs reaching Halo Studios, World’s Edge, Gears of War: E-Day, and other teams as Activision takes responsibility for the next Halo game. Bethesda is reassuring Obsidian staff, while Undead Labs becomes employee-owned and Star Wars Zero Company passes an estimated one million sales.
Xbox Restructuring Puts Halo and World’s Edge Under Activision
Microsoft’s latest cuts include 268 layoffs across Halo Studios and other first-party development teams, alongside a restructuring that moves the next Halo project under Activision. Halo Studios cinematic director Josh Daniels says he was promoted and laid off within the same week, while former studio leaders Bonnie Ross and Kiki Wolfkill have publicly commented on the losses.
World’s Edge, the studio responsible for managing the Age of Empires series, reportedly loses just under half its employees during its move from Xbox control to Activision. Its next project is also reported to have been canceled.
The cuts also reach Gears of War: E-Day, with the game’s story director laid off shortly before its early access launch after working on the project for more than four years.
Bethesda Promises Obsidian Will Keep Its Creative Identity
Bethesda president Jill Braff tells staff that Obsidian Entertainment will remain a distinct team after the Fallout: New Vegas and Grounded developer is brought under Bethesda as part of Xbox’s reorganization. Braff describes the change primarily as a reporting-structure adjustment and says Obsidian will retain its existing leadership, creative identity, and strengths.
Undead Labs Becomes Employee-Owned While Cutting Staff
Undead Labs, the State of Decay 3 developer, is now an independent, employee-owned studio after separating from Xbox, but says a significant number of employees were laid off during the transition. Microsoft had previously signaled its intention to divest the Seattle-based studio, and Undead Labs says development of State of Decay 3 remains actively underway.
Discord Relaunches Age Verification With Account Signals
Discord has relaunched age verification for all users, introducing an age-estimation model that uses account signals to determine a user’s age group. The revised process also offers verification methods that do not require video selfies or identification documents, following backlash over privacy concerns.
Star Wars Zero Company Passes an Estimated One Million Sales
Star Wars Zero Company, the XCOM-like turn-based tactics game from Bit Reactor, has sold more than one million copies according to estimates from industry analyst Alinea Analytics. The development team is reportedly furloughed, with the sales milestone prompting renewed discussion over whether those developers can be reinstated and paid.