In a sweeping corporate restructuring that reshapes the future of one of gaming’s most iconic franchises, Activision is taking over development of the Halo series, while the longtime studio behind it — Halo Studios, formerly 343 Industries — will be reduced to a support team. The move forms part of a broader consolidation effort by Xbox, which announced the changes on September 22, just three months after a larger round of more than 3,000 layoffs in July. The decision marks a dramatic shift for a franchise that has been in the hands of 343 Industries since 2007, and it comes as the publisher prepares to build the next Halo entry with a fresh, purpose-built team.
According to a blog post from Xbox chief content officer Matt Booty, the upcoming Halo game will be developed by Activision through a dedicated unit that is explicitly separate from ongoing Call of Duty development. Booty confirmed that the next entry is being created by “a new, purpose-built team that is separate from ongoing development and plans for Call of Duty.” The announcement also included 268 layoffs across Halo Studios and other parts of Xbox, with Booty noting that the company is now 75 percent complete with its planned layoffs as part of its larger Xbox “reset.” A small remnant of the studio will continue “supporting the Halo community and games in-market,” effectively ending the nearly two-decade-old studio’s role as the franchise’s primary developer.
A Franchise Rebuilt From The Ground Up
For over two decades, Halo Studios — originally founded as 343 Industries in 2007 — has been the creative heart of the sci-fi shooter. The team led development on the first Halo remake, Halo 4, Halo 5: Guardians, Halo Infinite, and the latest remake of the original game, Halo: Campaign Evolved, which launched earlier this year. While the studio has enjoyed notable commercial success, it has also weathered a string of layoffs and an increasingly uncertain future in recent years.
The restructuring signals that Xbox leadership is now focused on consolidating its various studios and franchises even further, with Halo being one of the most significant shifts. Alongside the Halo handover, Xbox is also moving World’s Edge (Age of Empires) and Rare under Activision, consolidating a large portion of its portfolio under a single publisher.
“I am deeply grateful for what our colleagues have built,” wrote Booty in the memo. “And I know how difficult today will be for those leaving and the teams around them.”
Matt Booty, Xbox Chief Content Officer
Activision’s president, Rob Kostich, addressed the transition with a tone of both ambition and reverence for the franchise’s legacy. “We’re thrilled to welcome Halo, Rare, and World’s Edge to Activision,” he said. “It’s an honor and a responsibility that we do not take lightly. These teams and their games have inspired fans around the world for decades.”
Kostich outlined what he described as a bold vision for the franchise’s future. “For Halo, our goal is clear: 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 said. “It is a bold ambition, one that this franchise deserves. We have already begun assembling a purpose-built team, unique in capability and talent, ready and excited to deliver this next chapter with the community.”
Community Reaction And What It Means For Fans
The announcement has sent ripples through the Halo community, where fans have long grown accustomed to the studio’s steady stewardship of the franchise. For many, the idea of a Call of Duty powerhouse taking over a beloved sci-fi series raises both hopes and concerns. On one hand, Activision brings deep experience in building massive live-service titles, cross-platform infrastructure, and a track record of delivering blockbuster releases. On the other, the departure of 343 Industries as the lead developer marks the end of an era for a studio that defined the franchise’s modern identity.
The reduction of Halo Studios to a support role is particularly notable, as it means the team that has shaped Halo’s direction since 2007 will no longer be the creative force driving the series forward. The remaining staff will focus on maintaining existing games and supporting the community, rather than leading new development. This transition underscores a broader industry trend of consolidation, where publishers increasingly centralize development resources and restructure studios to maximize efficiency and cross-franchise expertise.
Looking Ahead
While Xbox and Activision have not yet revealed a concrete release date for the next Halo game, the publisher has signaled that work is already underway. The emphasis on a “purpose-built team” suggests that Activision intends to assemble a fresh roster of talent to tackle the franchise, rather than relying on the departing 343 Industries staff. Fans will likely be watching closely to see how the new team approaches the series’ signature blend of narrative depth, multiplayer innovation, and iconic sci-fi world-building.
As the Xbox “reset” reaches its 75 percent milestone, the coming months will be crucial in determining how these structural changes play out in practice. Whether Activision can deliver a Halo game that honors the franchise’s legacy while injecting new energy remains to be seen, but one thing is certain: the next chapter of Halo will be written by a new generation of developers, and the entire industry will be watching to see how the transition unfolds.
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