Xbox merges Playground Games and Turn 10 Studios and cuts 268 jobs
Microsoft is restructuring Xbox, combining Playground Games and Turn 10 Studios into one team. 268 roles are also being cut.
- According to Matt Booty, the studios will keep working on Forza and Fable, but a new name for the combined team has not been confirmed.
- At the same time, 268 Xbox positions are being eliminated as part of a second round of layoffs within Microsoft Gaming.
What happened
Microsoft has once again adjusted the structure of Xbox and Microsoft Gaming. The clearest change is that Playground Games and Turn 10 Studios will now continue as one team. Xbox chief creative officer Matt Booty reportedly said the two studios have worked together as creative and franchise partners for more than a decade, and that their work is now being formally brought under a single team.
The merger affects two studios that have long worked on the same racing franchises. Playground Games developed the Forza Horizon series, while Turn 10 Studios is responsible for Forza Motorsport. The available reporting does not say that either studio is disappearing; this is an organizational merger of their development structures.
Separately, the reporting says 268 Xbox positions are being cut in a second wave of layoffs. That reduction is described as part of a broader restructuring within Microsoft Gaming. Based on the information provided, it is not clear how many of those roles, if any, are directly tied to Playground Games or Turn 10.
In the same context, changes around Activision and Bethesda are also mentioned, but without detailed information on which teams or studios are affected.
Timeline
2001 — Turn 10 Studios is founded to develop racing games for Microsoft Game Studios.
2012 — Playground Games releases the first Forza Horizon.
Earlier this year — Microsoft announces a second wave of job cuts within Xbox.
2026-09-22 — Microsoft announces a new reorganization within Xbox and merges Playground Games and Turn 10 Studios into one development team.
2026-09-22 — Reporting says 268 Xbox positions are being eliminated as part of that second round of layoffs.
2026-09-22 — Matt Booty reportedly writes that the two studios have worked together for more than ten years and that their work now falls formally under one team.
2026-09-22 — The same reporting references changes around Activision and Bethesda, but without further organizational details.
Background
According to the provided information, Playground Games has made every Forza Horizon game since 2012. Turn 10 Studios has existed since 2001 and was founded to develop racing games for Microsoft Game Studios. This means the reorganization brings together two teams that have worked within the same franchise for years and are now being placed closer together administratively.
The reporting also mentions a Fable project or moment for next year, but without a title, platform, or release date. So it can only be confirmed that Fable is mentioned in the context of the reorganization, not which specific release or announcement is meant.
Related GAME-scanner articles
- Xbox merges Playground Games and Turn 10 for Forza and Fable
- Xbox confirms 268 more layoffs in broader Microsoft Gaming restructuring
- Xbox reportedly preparing second layoff round and studio consolidation, says Eurogamer
Sources
- GameSpot: Xbox’s Forza Studios Have Been Tag-Teaming For Years. Now They’re Becoming One
- GameSpot YouTube: Fable - Release Date Reveal Trailer