- Activision will develop the next major Halo game with a newly assembled team.
- Halo Studios will retain a smaller group supporting existing games and the community.
- Xbox's restructuring also affects Rare, World's Edge, Bethesda, Playground Games, Turn 10, and King.
Xbox has just dropped a bombshell as part of an internal restructuring announced on September 22. Activision takes over the development of the next mainline Halo game, while the longtime developer Halo Studios faces another round of layoffs.
Yes, the studio behind nearly two decades of Halo development will no longer lead the franchise’s next major installment. Instead, Activision is assembling a dedicated team to carry the iconic series forward. Interestingly, this announcement also validates an earlier insider report claiming that Halo would move under Activision during Xbox’s restructuring.
Xbox chief content officer Matt Booty confirmed this massive shift in an internal memo on the Xbox Wire. He explains that Activision will develop the next Halo title through a “new, purpose-built team” operating separately from Call of Duty’s ongoing development.
The announcement arrives alongside 268 job eliminations across Halo Studios, other Xbox first-party studios and central management functions. Matt acknowledges the impact and writes:
I am deeply grateful for what our colleagues have built, and I know how difficult today will be for those leaving and the teams around them.
For Halo fans, the biggest question is what this means for the franchise’s creative direction at Halo Studios, formerly known as 343 Industries. Matt says that a smaller team is dedicated to supporting the existing games and the community. Meanwhile, Activision is responsible for shaping the next major chapter.
The Activision transition is just one part of Xbox’s wider organizational overhaul. Rare and World’s Edge, the studios associated with Sea of Thieves and Age of Empires, will also fall under Activision’s expanded remit.
Meanwhile, a new Fallout game will be released by Bethesda as they take responsibility for Obsidian. Playground Games and Turn 10 Studios are merging to focus on Forza and Fable on Xbox, while King will oversee Microsoft Casual Games. Ninja Theory could also shut down as Xbox failed to find a buyer.
While it’s certain that Activision’s arrival marks a turning point for Halo, and the franchise has entered an entirely new development era.
