Where Every Xbox Game Studio Stands Following the July 2026 Reset
Microsoft’s massive restructure left nine Xbox Game Studios standing. Here is the full update on Fable, Halo, and Gears of War E-Day.
Key Takeaways
- Studio Contraction: Only nine core teams remain directly under Xbox Game Studios following the official divestment of four studios during the July 2026 reset.
- Release Roadmap Maintained: Major upcoming releases remain on schedule, including Halo Campaign Evolved on July 28, Minecraft Dungeons 2 on September 29, and Gears of War: E-Day on October 6.
- Corporate Hierarchy Shifts: Mojang and King will now report directly to Asha, reflecting Microsoft’s strategic view of both major studios as primary platforms.
Microsoft’s massive restructuring has reshaped several parts of its gaming business, resulting in studio divestments, project cancellations, and thousands of layoffs across the company. As the dust begins to settle, here’s where each Xbox Game Studios team currently stands following the July 2026 reset.
The State of Xbox Game Studios
The past 24 hours has been a whirlwind for most and a devastating blow for the employees who were laid off following Xbox’s major reset. With four studios officially divested, nine studios now remain under the direct Xbox Game Studios umbrella. Here’s what we know about their current status.
- Playground Games: The studio is on track to release its highly-anticipated Fable reboot in 2027 as planned. This follows the recent successful launch of Forza Horizon 6. Playground is the last standing studio under XGS that was acquired during Xbox’s 2018 expansion wave which included Compulsion Games, Undead Labs, and Ninja Theory.
- Halo Studios: The team is preparing to release Halo Campaign Evolved on July 28. A rumored multiplayer live-service game, codenamed Project Ekur, has reportedly been canceled, with its development team reassigned to assist with Campaign Evolved. Rumors also suggest Xbox might eventually move the studio under the Activision umbrella.
- Mojang Studios: The upcoming Minecraft Dungeons 2 is scheduled to launch on September 29. Mojang received a special mention in Asha’s Xbox Reset email and will now report directly to her. Cited as a source of critical geographic, demographic, and product differentiation for Xbox, while also calling it under-invested, the studio is expected to receive increased resources. Minecraft’s VP Helen Chiang has been promoted to Xbox Chief Operating Officer.
- The Coalition: Gears of War: E-Day is set to launch on October 6. The title remains a console exclusive and serves as Xbox’s main ticket for the Holidays.
- InXile Entertainment: Work continues on the previously announced AAA RPG Clockwork Revolution which is also an Xbox console exclusive. The team is co-developing the project with Shapeshifter Games, a studio formed in 2023 by former Volition developers.
- Obsidian Entertainment: Development continues on Grounded 2 and upcoming DLC for The Outer Worlds 2. However, the studio was hit by yesterday’s significant layoffs which included veteran employees.
- Rare: No new games are currently announced. The studio was heavily affected by layoffs and shutdowns last year which ultimately resulted in the cancellation of its anticipated project, Everwild.
- Turn 10 Studios: No new games are currently announced. Following the conclusion of the Forza Motorsport series, the team is now supporting Playground Games on the Forza Horizon franchise. Turn 10 was also heavily impacted by the Xbox layoffs last year.
- World’s Edge: The studio behind the Age of Empires IP currently has no new games announced. Its last major release was Age of Mythology: Retold in 2024.
The Broader Xbox Network
According to Jason Schreier, ZeniMax Media will be significantly impacted by this reset, signaling a high number of layoffs. While focus will be on Fallout and The Elder Scrolls franchises, teams will still continue work on the Wolfenstein, Doom, and Quake.
More from ZeniMax, Arkane, the studio currently developing Marvel’s Blade, is not out of the woods. The studio is reportedly in “required consultation with its Works Council to review potential strategic options.”
The broader Xbox Gaming umbrella still retains a massive portfolio through ZeniMax Media and Activision Blizzard acquisitions. This includes Bethesda Game Studios, Bethesda Softworks, id Software, MachineGames, Elsewhere Entertainment, Infinity Ward, Raven Software, Sledgehammer Games, Treyarch, Arkane, and King. Like Mojang, King will now report directly to Asha reflecting Microsoft’s view of both businesses as two of Xbox’s largest “platforms”.
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Sending some gaming news your way from a surfing paradise island. Loves creating content, and researching informative facts and useless trivia. A novice in the gaming industry but a veteran in communications and publication.
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