Microsoft has handed development of the next mainline Halo game to Activision, confirming that Halo Studios (formerly 343 Industries) will no longer lead the franchise’s flagship entries. The announcement, made official today through an Xbox statement, arrives amid a sweeping wave of restructuring across Microsoft’s gaming divisions that has already reshaped several studios and cost hundreds of employees their jobs.
Under the new arrangement, Activision will build “a new purpose-built team” to create the upcoming Halo title. This group will operate separately from Call of Duty development, according to Xbox, while a small remaining staff at Halo Studios continues supporting existing games and the broader community in-market. The move marks one of the most significant departures for the long-running franchise since Bungie sold its independence from Microsoft back in 2007.
A New Team Takes the Reins
The Xbox statement clarified that Activision will lead development while Halo Studios shifts to a smaller supporting role. “Activision will also be developing the next Halo title, led by a new, purpose-built team that is separate from ongoing development and plans for Call of Duty,” the company said today. It added that “a small team at Halo Studios will continue supporting the Halo community and games in-market.” Activision president Rob Kostich welcomed the addition to Microsoft’s portfolio in a statement provided to Kotaku, noting that Halo, Rare, and World’s Edge are all joining Activision.
“We’re thrilled to welcome Halo, Rare, and World’s Edge to Activision. 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. 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.”
Rob Kostich, Activision president
Kostich continued by describing the ambition behind the project. “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.” Rare, which also moves under Activision’s umbrella, joins Halo as part of the same consolidation.
A Turbulent Period for Microsoft Gaming
The reorganization places Halo Studios’ reduced role within a broader pattern of layoffs and studio consolidations at Microsoft. The restructuring has already led to British studio Ninja Theory closing and brought studios such as Obsidian and Rare under the control of other internal divisions. Hundreds more employees have lost their jobs across the various waves of cuts, underscoring how dramatically Microsoft’s gaming strategy is being recalibrated.
Halo originated with Bungie before 343 Industries took over oversight after Bungie bought its independence in 2007. Halo Studios—which rebranded from 343 Industries in 2024—developed a number of mainline entries, including Halo 4 in 2012, Halo 5: Guardians in 2015, and Halo Infinite in 2021. Most recently, the studio delivered the reboot of Halo 1, Halo: Campaign Evolved.
Beyond the mainline series, Halo Studios collaborated on numerous other projects, including Halo: The Master Chief Collection and the Halo Wars games. With development now moving to Activision, Microsoft’s decision represents a notable shift in how it approaches one of its most valuable intellectual properties.
Looking Ahead
No release window or additional details about the upcoming Halo title have been disclosed at this time. Activision has said it is already assembling the purpose-built team responsible for development, though specifics around staffing and timelines remain undisclosed. Meanwhile, a smaller group within Halo Studios will continue supporting existing games and community-facing content as Microsoft works through its restructuring.
The gaming community is now watching closely to see how this transition unfolds, particularly given the franchise’s storied history and the uncertainty surrounding which studio ultimately shapes the next chapter for Master Chief. As Activision begins building its team, fans will await further announcements regarding the game’s development progress and eventual launch.
1 comment