Xbox is merging its Forza developers into a single studio

The structural changes were detailed in an internal memo shared by Xbox chief content officer Matt Booty. In the memo, Booty explained that Playground and Turn 10 are coming together as a singular studio to focus collectively on the Forza and Fable franchises. He noted that these two distinct studios have served as technological, creative, and franchise partners for over a decade, and today’s organizational changes formally transition their collaborative efforts into one unified team.

The integration of Turn 10 Studios into Playground Games, however, leaves significant and immediate questions surrounding the future of the Forza Motorsport franchise. Enthusiasts of the simulation racing series are left wondering whether Microsoft will ever return to the standalone Forza Motorsport banner or if the company has chosen to pivot its racing portfolio exclusively toward the more commercially dominant Forza Horizon open-world experience.

The writing has arguably been on the wall for Turn 10 Studios for quite some time following a severe wave of restructuring. More than 70 people at Forza Motorsport developer Turn 10 Studios were laid off last year, in a severe downsizing move that impacted the vast majority of the studio’s workforce. Over the past year, Turn 10 Studios has essentially operated in a skeleton-crew capacity, largely focused on maintaining the existing infrastructure and content updates for Forza Motorsport. With the formal merger announced today, those remaining team members are transitioning over to Playground Games, where they will lend their technical expertise to the ongoing development of Forza Horizon and the development pipeline for Fable.

The consolidation of Playground Games and Turn 10 Studios does not happen in a vacuum; it is part of a much broader and deeper reorganization of the entire Xbox ecosystem. In addition to the racing studio changes, Activision is taking on the legendary Halo franchise, shifting oversight of Microsoft’s flagship sci-fi shooter series. Furthermore, changes are hitting other prominent internal groups, including Sea of Thieves developers Rare and World’s Edge, the dedicated studio responsible for managing the historical strategy powerhouse Age of Empires. These wide-reaching shifts underscore a massive strategic reset by Microsoft’s gaming division as leadership attempts to streamline operations, realign studio strengths, and refocus internal resources on major core franchises moving into the future.