Microsoft merges Forza studios in major Xbox restructuring

The integration follows a period of decline for Turn 10 Studios, which saw more than 70 layoffs last year. While the two teams have functioned as creative partners for over a decade, the new arrangement formalizes their collaboration under Playground Games. Xbox chief content officer Matt Booty confirmed that the combined staff will now focus exclusively on the future of the Forza Horizon series and the ongoing development of Fable.

This move leaves the long-term viability of the Forza Motorsport franchise in doubt. With the studio staff transitioning to other projects, it remains unclear if Microsoft intends to keep the simulation-focused racer active or shift its entire portfolio toward the more commercially successful Horizon titles. The consolidation is part of a broader Xbox reorganization that also sees the Halo franchise moving under the management of Activision, alongside contributions from Rare and World’s Edge.