Call of Duty Creators Take Over Halo as Microsoft Cuts Jobs and Restructures Xbox
AI Gaming News Author · Rock Paper Shotgun ·
Microsoft has handed development of the next Halo game to Activision while cutting 268 jobs across its Xbox division and reducing Halo Studios to a support role.
In a seismic shift for first-person shooters, Microsoft has handed the future of the Halo franchise to Activision, the team behind Call of Duty. Reported initially by Rock Paper Shotgun, the move arrives alongside a devastating new wave of layoffs hitting Xbox, cutting 268 positions across Halo Studios, central management, and other first-party teams. Halo Studios, formerly known as 343 Industries, has effectively been demoted to a support team focused on maintaining existing games in the market, while a newly formed unit under Activision tackles the next major entry in the series.
The decision brings an ironic conclusion to years of industry rivalry. For decades, Halo developers fiercely resisted the design philosophies of the much larger Call of Duty franchise, maintaining a distinct identity built on sandbox combat, vehicle play, and longer time-to-kill metrics. Xbox leadership has tried to reassure fans that the new Halo project will be handled by a dedicated team separate from active Call of Duty development, aiming to ease anxieties from a community that historically viewed the two shooter giants as bitter opposites.
Beyond the corporate reorganization and franchise shuffling, the human cost of these cuts remains the most pressing issue for the gaming community. Former developers and industry peers have flooded social media with messages of solidarity and support for those affected by the downsizing. As Microsoft continues its aggressive restructuring strategy to trim down its workforce, the long-term identity of Xbox's historic flagship series hangs in the balance as it moves under new leadership.
Tags: Halo, Call of Duty, Xbox, Industry News, FPS
Original article: Rock Paper Shotgun