Mere hours after leaks, Xbox Wire published an internal email officially confirming layoffs of 268 employees, with changes at Activision, Bethesda, King, Playground, and Turn 10. All layoffs came from Halo Studios, and Microsoft has put Activision in charge of the next Halo game. A small Halo Studios team will remain to support Activision.

Ninja Theory will officially close instead of being bought, after two buyout deals fell through. The Hellblade/Senua franchise will be developed by another Xbox studio. Blizzard escaped its anticipated layoffs.

Activision will oversee World's Edge, Rare, and the next Halo, plus Call of Duty. Bethesda will command Obsidian. King takes on Microsoft Casual Games. Playground Games and Turn 10 will merge, focusing on Fable and Forza. Undead Labs has split from Xbox with its own IP, continuing State of Decay 3 for Xbox Game Pass, PC, and PlayStation 5 in 2027, with a closed beta planned before the end of 2026.