Microsoft cut 268 Xbox jobs and handed Halo to Activision.

Microsoft is folding its own franchise into the studio it paid $69 billion to buy.

Xbox has cut 3,600 jobs since July as AI-era computing costs squeeze margins three to ten times thinner than rivals.

“I am deeply grateful for what our colleagues have built,” Xbox’s Matt Booty told staff.

Ninja Theory, unable to find a buyer, now heads toward a proposed closure after consultation with staff.

Sources: Aol, Investing.com, BBC