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Xbox is in the middle of a major reorganization that has triggered a second wave of layoffs across Microsoft's studios, including the closure of Ninja Theory (creator of Hellblade), and steep cuts at Halo Studios and Age of Empires developer World's Edge. The shakeup has also seen Obsidian Entertainment folded under Bethesda's umbrella, with Bethesda's president promising the Fallout: New Vegas studio will retain its creative identity, and the Halo franchise itself reportedly moving to Activision, raising fan concerns about this year's Halo Fest and a possible lore reboot. The turmoil has drawn strong reactions from across the industry, including from Double Fine founder Tim Schafer, who spoke about his studio's recent split from Xbox and broader 'greed' in the games business following Game Pass-era consolidation. Gaming communities have expressed confusion and heartbreak over the cumulative impact, marking one of the most turbulent weeks in Xbox's recent history.