Microsoft may close Ninja Theory, Activision takes over Halo development

Microsoft (MSFT) received positive analyst reports this week. Oppenheimer's Brian Schwartz reiterated an outperform rating and raised his price target to $570 from $515, citing enterprise customers' increasing adoption of Microsoft's AI solutions.

Microsoft shares fell 1.3% on Tuesday. Oppenheimer raised its price target to $570, citing strong Azure and M365 growth, AI platform adoption, and capital discipline. Analyst Brian Schwartz maintains an Outperform rating, noting potential risks from AI disruption and enterprise IT spending shifts.

Microsoft shares fell 1.3% Tuesday. Oppenheimer raised its price target to $570 from $515, citing confidence in the company's growth and capital discipline after a management meeting.

Xbox is cutting 268 jobs and shifting Halo game development to Activision, as part of a broader restructuring. The move follows failed attempts to sell Ninja Theory, which may now close. Xbox has cut 1,600 jobs so far, aiming for 3,600 total reductions. The company cites slow growth in its gaming division, despite Game Pass's success.

Xbox has laid off 268 more employees, part of a planned 3,200 role reduction. The cuts include Halo Studios and other first-party teams. Undead Labs has transitioned out, while Ninja Theory faces closure. Xbox is merging studios, with Activision taking over Halo development and other studios being reorganized under different umbrellas.

Microsoft's Xbox restructuring leads to 268 job cuts at Halo Studios, which will no longer develop the next major Halo game. Activision will form a new team to create the next Halo title, aiming to make the 'greatest Halo game ever' according to Activision president Rob Kostich. This follows broader restructuring at Xbox, including studio closures and consolidations.