Microsoft Gaming Restructuring: Halo, Hellblade, & More — Full Breakdown & Transcript

Microsoft Hands Halo Over to Activision in Latest Xbox Shake-up - IGN Daily Fix

0h 03m video Published Sep 22, 2026 Transcribed Sep 22, 2026 IGN IGN
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Beginner 2 min read For: Gamers and followers of gaming industry news.
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⚠️ Average / Some Fluff

"Title promises major shakeups and delivers, but the 'blood of Don Walker' typo and vague 'could remove combat' slightly oversell the actual update details."

AI Summary

This video covers major gaming news, including Microsoft's restructuring that affects Halo and Hellblade franchises, and an upcoming update for Blood of Dawnwalker that may allow players to skip combat.

[00:22]
Microsoft hands Halo to Activision

Microsoft confirms Activision will develop the next mainline Halo game with a new purpose-built team separate from Call of Duty. Halo Studios will retain a small team to support existing games.

[00:37]
Mass layoffs at Microsoft Gaming

268 positions cut across Halo Studios and other first-party studios, part of a restructuring that has already seen 1,600 staff lose jobs earlier this summer, with another 1,600 expected to go this financial year.

[01:03]
Matt Booty's statement on restructuring

Xbox chief content officer Matt Booty says the actions bring them roughly three quarters of the way through previously announced restructuring, expressing gratitude for colleagues' work.

[01:32]
Ninja Theory likely to close

Hellblade developer Ninja Theory will likely close after two separate agreements to find a buyer fell through. Consultation with employees on proposed closure begins.

[02:00]
Double Fine and Compulsion Games go independent

Both studios managed to become independent and bring their IP with them, contrasting with Ninja Theory's situation.

[02:15]
Blood of Dawnwalker update adds easier difficulty

First major update in October will introduce an additional, easier difficulty level for players who want to skip combat and focus on story. Game director Konrad Tomaskiewicz confirmed.

Microsoft's gaming division is undergoing significant restructuring, with Halo moving to Activision and Ninja Theory facing closure, while Blood of Dawnwalker aims to make its game more accessible with a story-focused mode.

Mentioned in this Video

💡 Key Takeaways

📊

Halo moves to Activision

A major franchise shift that could redefine Halo's future development.

00:22
📊

Layoffs scale

Quantifies the massive restructuring impact on Microsoft's gaming workforce.

00:37
💡

Ninja Theory closure

Highlights the volatility in the gaming industry and the fate of beloved studios.

01:32
💡

Accessibility in games

Shows a trend toward making games more accessible for story-focused players.

02:15

[00:00] What's up everybody, Damian here with your Fix of Gaming News. Another major shakeup is happening at Microsoft, affecting both the Halo and Hellblade franchises, and an update for the blood of Don Walker could remove... combat. This is your Daily Fix.

[00:22] Microsoft has confirmed it's handing the reins of the next mainline Halo game to Activision. This also means mass layoffs have hit Halo Studios as part of a significant and ongoing restructure. 268 positions across Halo Studios and other first-party studios are part of the great reset of Microsoft's gaming business,

[00:37] which has already seen 1,600 staff lose their jobs earlier this summer. And unfortunately, it's not over. Microsoft said another 1,600 staff would also go this financial year. Xbox chief content officer Matt Booty addressed the layoffs in a blog post today, saying, quote,

[00:50] The actions, completed since July, inclusive of the studio divestitures, bring us roughly three quarters of the way through previously announced restructuring. I am deeply grateful for what our colleagues have built, and I know how difficult today will be for those leaving and the teams around them."

[01:03] Booty also touched on the future of Halo, confirming that Activision will be developing the next game with, quote, "...a new, purpose-built team that is separate from ongoing development and plans for Call of Duty. A small team at Halo Studios will continue supporting the Halo community and games in market."

[01:16] Nothing else was mentioned about other Halo-related projects, like Project Foundry, which was designed to showcase Halo built in Unreal Engine or the other games teased by Halo Studios. Moving on, Halo may get to live on at Activision, but another Xbox property that unfortunately is getting the axe is Hellblade.

[01:32] Its developer Ninja Theory will likely be closing down after attempts to find a buyer have all fallen through. In that same blog post discussing Halo, Matt Booty said of the Ninja Theory deal, quote, Unfortunately, two separate agreements for Ninja Theory fell through.

[01:44] We will now begin consultation with employees on a proposed closure while continuing to explore other paths forward Xbox had just announced a new game in the Hellblade franchise simply titled Senua at this summer showcase If Ninja Theory does close it unclear what will happen to the Hellblade series whose IP rights belong to Microsoft

[02:00] Developers Double Fine and Compulsion Games, both formerly part of Xbox Game Studios, did manage to become independent and bring their IP with them. And finally, the first major Blood of Dawnwalker update will be dropping in October, and it will cater to those pacifist players out there.

[02:15] out there. Via Eurogamer developer Rebel Wolves game director Konrad Tomaskiewicz, he's the coming changes with reworked difficulty options and other gameplay tweaks. Tomaskiewicz said quote we will introduce an additional difficulty level but an easier one because

[02:29] many people are asking for a more easy difficulty. The story mode which we have right now will be a different difficulty we will call it demanding or something like this and we'll add a new story mode which will be even easier for people who don't want to experience the combat they just want to

[02:41] want to learn the story and go through the game without this gameplay challenge. How exactly the blood of Don Walker will tackle an easier difficulty mode is unclear. The game director's comments suggest it will cater to those who want to skip combat altogether, though how this will be achieved is not exactly clear.

[02:55] There's no release date for the update just yet, but with its launch set for early October, we won't have to wait too long. And that is your Daily Fix for today, Tuesday, September 22nd. September is a big month for many reasons, and this September is even bigger because

[03:08] we're celebrating IGN's 30th anniversary. That's right, it's been 30 years since the very first post on IGN's website, and to kick off the festivities we're bringing you all a gift. A bundle of IGN favors to enjoy all month long and beyond.

[03:21] Wage war against the dragons of Tamriel and the Elder Scrolls Online elsewhere, brave the dark reefs and deep oceans of Subnautica, protect reality itself from an unknown evil and post-apocalyptic horror game Remnant 2. Grab those games and more for as little as $15.

[03:34] Your purchase also supports Child's Play, which helps bring toys, games and other entertainment to children's hospitals worldwide. And now that you're caught up on the news, watch our review of Silent Hill Townfall. I'm Damon Hatfield and for all your video game news, stay tuned to IGN.

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