Xbox moves World's Edge under Activision as 268 roles go in wider reshuffle
The Age of Empires studio World's Edge has lost just under half its staff and been placed under Activision's control as part of an Xbox organisation shake-up.
The figure comes from former creative director Adam Isgreen, who said he was among those let go. He had spent over 16 years at Microsoft in various positions, according to Eurogamer, which reported the cuts on September 23, 2026.
World's Edge is best known as the steward for Age of Empires, the long-running historical strategy series. Xbox has not published its own staff number for the studio. Isgreen's account is the fullest public detail so far.
The World's Edge cuts sit inside a wider restructuring Xbox detailed in an Xbox Wire update published September 22, 2026, titled "Continuing Our Reset". Xbox said it would eliminate 268 roles across Halo Studios, other first-party studios — teams owned by Xbox — and the XGS management and central functions layer.
Xbox said actions completed since July, including studio divestitures, take it roughly three-quarters of the way through its previously announced restructuring, according to Xbox Wire.
Halo is changing hands. Activision will develop the next Halo title with a new, purpose-built team separate from Call of Duty development and plans. A small team at Halo Studios will stay on to support the Halo community and games already in-market.
Other studios are being regrouped rather than closed. Obsidian moves under Bethesda's control. It will continue current projects including Grounded, and is working on a new Fallout project made in collaboration with Bethesda Game Studios. Rare moves under Activision's control. Playground Games and Turn 10 are being combined into one studio focused on the Forza racing series and Fable.
King, the mobile publisher in the Xbox group, will expand its remit to include Microsoft Casual Games. That covers the card, board and puzzle titles bundled with Windows.
Three studios have already left Xbox ownership. In August 2026, Compulsion and Double Fine returned to management with their intellectual property, back catalogues and runway funding. Undead Labs transferred to management on similar terms and, with a new publisher, will still release State of Decay 3 day one on Game Pass, the Xbox subscription service.
Two deals fell through. That is Xbox's explanation for the proposed closure of Ninja Theory, the UK studio behind Hellblade. Xbox said two separate agreements for the studio did not complete. It will now begin consultation with employees on a proposed closure while continuing to explore other paths forward. Consultation is the formal process UK employers must follow before redundancies.
Consultation with Arkane remains under way. Xbox expects that process to continue through the end of 2026.
For players, this means the badge on the box is shifting. Age of Empires, Halo and Rare sit with Activision, Obsidian and Fallout sit closer together under Bethesda, and Forza and Fable sit under one roof. Xbox says existing games stay supported and announced projects continue.
