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 and Playground Games in a memo to employees.
• The combined studio will focus exclusively on the Forza Horizon and Fable franchises.
• Playground Games co-founder Trevor Williams will continue to lead the merged studio, with no new name announced.
• The merger is part of a larger Xbox restructuring that includes 268 layoffs and other studio changes.
• The future of the Forza Motorsport series is now considered effectively ended by industry observers.

Background

This merger follows a series of layoffs at Turn 10 Studios in 2025, which left the studio operating with a skeleton crew. The last new Forza Motorsport game was released in 2023, and a planned new entry was reportedly canceled. The broader Xbox restructuring, which began in July 2026, has included significant layoffs and studio reorganizations, including the transfer of the Halo franchise to Activision.

How outlets are covering it

The Verge and Kotaku report that the merger is part of a larger Xbox restructuring, with The Verge noting that the closure of Turn 10 leaves big unanswered questions around the future of Forza Motorsport. Jalopnik argues that the merger effectively means the end of the core Forza Motorsport series, citing the lukewarm reception of the 2023 reboot and the subsequent layoffs. Kotaku notes that it is unclear what will happen to the original Forza Motorsport series, but the merger suggests a shift in focus to Forza Horizon and Fable.

Why it matters

The merger of Turn 10 and Playground Games signals a significant shift in Xbox's strategy for its racing franchise, prioritizing the open-world Forza Horizon series over the more realistic Forza Motorsport. This move, along with other layoffs and studio changes, reflects Microsoft's ongoing efforts to streamline its gaming division and focus on its most successful franchises.

What to watch

The merged studio will focus on developing new entries in the Forza Horizon and Fable franchises. The future of the Forza Motorsport series remains uncertain, with no new announcements or plans for a new entry. The broader Xbox restructuring is expected to continue, with further changes and layoffs possible.