Xbox Merges Turn 10 and Playground Games, Effectively Ending Forza Motorsport

Key points

• Xbox Chief Content Officer Matt Booty announced the merger of Turn 10 Studios and Playground Games in a memo to employees.
• The combined studio will focus exclusively on the Forza Horizon and Fable franchises, with no new studio name created.
• Playground Games co-founder Trevor Williams will continue to lead the merged entity, effectively absorbing Turn 10.
• The merger is part of a larger Xbox restructuring that includes 268 layoffs and the transfer of the Halo franchise to Activision.
• Forza Motorsport, the last of which was released in 2023, is expected to be discontinued as a result of the merger.

Background

This development follows a series of layoffs and restructuring at Xbox, which began in July 2026 with 1,600 layoffs. Turn 10 Studios had already undergone significant layoffs in July 2025, leaving the studio with a skeleton crew. The Forza Motorsport series had been in decline since the 2023 release, with no updates announced since December 2025. The merger is part of a broader effort by Microsoft to consolidate its gaming studios and focus on its most successful franchises.

How outlets are covering it

Jalopnik and Kotaku both emphasize the likely end of the Forza Motorsport series as a result of the merger. The Verge highlights the broader restructuring of Xbox, including the transfer of the Halo franchise to Activision. All three outlets agree that the merger is a significant blow to the Forza Motorsport series and a sign of the changing landscape of the video game industry.

Why it matters

The merger of Turn 10 and Playground Games is a significant development in the video game industry, as it signals the end of a long-running racing franchise and the consolidation of Microsoft's gaming studios. It also highlights the ongoing challenges facing the industry, including rising hardware prices and layoffs at major studios.

What to watch

The future of the Forza Motorsport series is uncertain, but it is likely to be discontinued as a result of the merger. The combined studio will focus on the Forza Horizon and Fable franchises, with the latter expected to launch in February 2027. The broader Xbox restructuring is expected to continue, with further layoffs and studio consolidations likely to follow.