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Xbox Restructures Amidst Studio Consolidation and Franchise Shifts

Xbox's restructuring includes merging Forza developers and staff cuts as part of broader brand changes.

In a significant development for Microsoft’s gaming division, Xbox is undergoing a substantial restructuring. This involves a strategic merger of its two Forza-focused development teams, Playground Games and Turn 10 Studios, into a single entity. The move, as reported by The Verge, aims to streamline operations and focus on the Forza and Fable franchises. This consolidation reflects Microsoft’s broader efforts to optimize resources amid substantial organizational changes within Xbox.

The restructuring also brings concerning news, as The Verge highlights, with planned job cuts affecting around 3,200 workers, including roles across Halo Studios and other first-party teams. This shake-up, labeled as diluting the Xbox brand, marks a pivotal moment as iconic franchises like Halo see significant changes, including a move to a new developer.

Meanwhile, IO Interactive’s planned release of 007 First Light on Nintendo’s upcoming Switch 2 has been delayed once again. According to GamesHub, the spy adventure game is now slated for a March 2027 launch, instead of its earlier promised release window. The delay is attributed to the need for further optimization to meet a polished standard.

Elsewhere in console news, a new official Middle-earth collection is coming to the Switch 2 on September 30, as reported by GameRant. This release packages “Middle-earth: Shadow of Mordor” and “Middle-earth: Shadow of War”, marking their debut on Nintendo hardware. The collection highlights the enduring appeal of Monolith Productions’ Nemesis System, a distinguishing feature of the Shadow series.

In a more amusing anecdote, Destructoid relayed a warning from NBA player Steven Adams, who humorously suggested a potential dip in league-wide performance with the upcoming launch of Grand Theft Auto 6. Scheduled for November 19, the highly anticipated game’s release could, according to Adams, distract athletes across sports.

The industry is also swirling with reports around Hideo Kojima’s PHYSINT, following its move from PlayStation to Xbox due to “budget concerns” and “missed deadlines”, as Destructoid noted. Kojima Productions, however, has contested these claims, indicating a complex narrative behind the scenes.