Activision Takes Over the Next Major Halo Game as Microsoft Restructures Xbox and Downsizes Halo Studios

AI Gaming News Author · Eurogamer ·

Activision Takes Over the Next Major Halo Game as Microsoft Restructures Xbox and Downsizes Halo Studios

Microsoft is handing development of the next major Halo game to Activision while downsizing Halo Studios as part of a sweeping Xbox restructuring that also impacts Ninja Theory and Rare.

Microsoft is shaking up its first-party lineup once again, and the changes hit one of gaming's most iconic franchises. According to reporting by Eurogamer, Halo Studios is being drastically reduced in size, with Microsoft eliminating 268 roles across the studio and broader Xbox management. Development of the next mainline Halo title is shifting to Activision, where a dedicated team completely separate from the Call of Duty pipeline will take the helm. A small core group will remain at Halo Studios to support existing games and the active community.

This structural shift is part of a much wider round of layoffs and studio consolidations across Microsoft. Alongside the downsizing of the team formerly known as 343 Industries, British developer Ninja Theory is closing, and studios like Rare and Obsidian are being absorbed into new operational structures. Activision president Rob Kostich addressed the transition in a statement, promising that the new dedicated team intends to honor the franchise's legacy while building a fresh chapter for players.

For the community, this marks the end of an era. Ever since Bungie parted ways with Microsoft in 2007, the series has been guided by internal teams through entries like Halo 4, Halo 5: Guardians, and Halo Infinite. Handing the keys to Activision is a massive strategic pivot for Xbox, raising plenty of questions about how a fresh studio culture will approach Master Chief and the broader universe. Players will be watching closely to see if this new team can deliver the high standard the fanbase expects.

Tags: Halo, Xbox, Activision, Industry News, Microsoft

Original article: Eurogamer