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| Halo: Campaign Evolved (pictured here) is now the last Halo game by Halo Studios. |
In a major shakeup for one of gaming's most iconic franchises, Microsoft has confirmed that the next mainline Halo game will be developed by Activision. The announcement came as part of a broader internal restructuring at Xbox, with significant layoffs affecting Halo Studios and other first-party teams.
Major Layoffs Hit Halo Studios
According to an internal memo from Matt Booty, Microsoft's Chief Content Officer, 268 roles are being eliminated across Halo Studios, other first-party studios, and the Xbox Games Studios management layer. The cuts bring Microsoft roughly three-quarters of the way through its previously announced plan to reduce its gaming workforce by 3,200 positions.
The layoffs are part of what Microsoft is calling its "Xbox reset," a comprehensive reorganization aimed at streamlining operations and strengthening key franchises. You can read the full details of this restructuring in the official Xbox announcement.
Halo Studios, formerly known as 343 Industries, has been the steward of the Halo franchise since 2011's Halo: Combat Evolved Anniversary. The studio most recently released Halo: Campaign Evolved. Following these cuts, the remaining team at Halo Studios will shift to a support role, maintaining the Halo community and existing games currently in the market.
Activision Takes the Reins on Halo
The big news for Halo fans is that development of the next mainline entry in the franchise has been handed to Activision. The publisher is assembling what it describes as a "purpose-built" team to lead development, separate from the ongoing work on the Call of Duty franchise.
Activision president Rob Kostich expressed enthusiasm about the opportunity, stating that the company's goal is to "make the greatest Halo game ever, worthy of its universe and legacy, while staying true to what made players love it in the first place." He called it a bold ambition that the franchise deserves and confirmed that the team is already being assembled.
According to reports from Game File, it remains unclear whether Activision will utilize an existing studio from its Call of Duty roster or build an entirely new team for the project. What is known is that the next Halo title is expected to be a full-feature, mainline installment—essentially Halo 7.
Broader Studio Reorganization
The changes extend well beyond Halo. Microsoft is restructuring several of its gaming divisions to align teams that already work closely together. Activision's remit is expanding to include World's Edge (Age of Empires) and Rare (Sea of Thieves), in addition to overseeing Halo development.
Bethesda will absorb Obsidian Entertainment, which continues work on Grounded and a new Fallout project developed in collaboration with Bethesda Game Studios. King, the mobile gaming giant behind Candy Crush, will take on Microsoft Casual Games, uniting two leaders in casual game design.
Additionally, Playground Games and Turn 10 Studios are merging into a single team focused on the Forza and Fable franchises—a consolidation of two studios that have partnered creatively for over a decade.
Fallout from the Restructuring
The reorganization has also brought difficult news for some studios. Undead Labs, creators of the State of Decay series, has successfully transitioned back to independent management and will release State of Decay 3 on Game Pass day one with a new publisher. Compulsion Games and Double Fine Productions similarly returned to management in August with their intellectual property and back catalogs.
However, the situation is more precarious for Ninja Theory. Two separate agreements to sell the Hellblade developer fell through, and Microsoft is now beginning consultation with employees regarding a potential studio closure. Consultation with Arkane Studios also remains ongoing and is expected to continue through the end of the year.
What This Means for Halo's Future
The transition of Halo development to Activision represents a significant shift for the franchise. Originally created by Bungie, Halo became Xbox's flagship title and remains one of the most recognizable gaming properties in the world. Handing the reins to Activision—a publisher primarily known for Call of Duty—signals Microsoft's desire to reinvigorate the franchise with fresh creative leadership.
For now, the exact state of development on the next Halo game remains unclear. Whether any meaningful progress has been made on the project or if it's still in early planning stages is unknown. What is certain is that Halo's future now rests with a new team at Activision, one that carries the weight of enormous expectations from a passionate and dedicated fanbase.
As Microsoft continues its restructuring efforts, all eyes will be on whether this bold bet on Activision can deliver a Halo game worthy of the franchise's legendary legacy.