Microsoft has confirmed that the next major Halo game will be developed by Activision, as part of a significant reorganisation affecting its Xbox first-party studios. This news follows a substantial downsizing of Halo Studios, formerly known as 343 Industries, which will now retain only a small team focused on ongoing support and community engagement.
Xbox Studios head Matt Booty detailed the restructuring, stating that 268 roles across Halo Studios, other first-party developers, and central management will be eliminated. He added that Activision is assembling a dedicated team, separate from its Call of Duty operations, specifically to handle the upcoming Halo title.
Activision to Lead Development with Separate Purpose-Built Team
Activision president Rob Kostich provided a statement to Kotaku highlighting the company’s responsibility following the transition. He affirmed the commitment to creating “the greatest Halo game ever,” maintaining the franchise’s core elements. Kostich noted that a unique team with specialised skills is already being brought together to manage this next chapter in the Halo series.
The restructuring also sees Rare and World’s Edge studios move under Activision’s control, consolidating several key Microsoft-owned franchises and teams within the publisher’s management.
Impact on Halo Studios and Xbox First-Party Ecosystem
Halo Studios has been the primary custodian of the Halo franchise since Bungie’s departure in 2007, overseeing mainline games from Halo 4 through Halo Infinite, along with remasters and related projects such as Halo: Campaign Evolved and the Halo Wars series. The decision to hand over mainline development to Activision marks a notable shift in the stewardship of the franchise.
This change is part of a wider pattern of Xbox ecosystem adjustments, which have included the closure of Ninja Theory and structural changes at other Microsoft-owned studios like Obsidian. The move is expected to consolidate resources but significantly reduces the footprint of Halo Studios within Xbox Game Studios.
Microsoft has not announced a release date or further details regarding the next Halo game. The emphasis remains on the new Activision-led team preparing the project while Halo Studios focuses on supporting existing titles and its community.
