Activision will now oversee the development of the Halo franchise as part of a broader corporate reorganization by Xbox. This shift will see the studio formerly known as 343 Industries, now referred to as Halo Studios, undergo further layoffs. The remaining staff will transition to a support role, assisting Activision in the creation of future Halo titles.
This strategic realignment was detailed in an Xbox blog post on September 22, marking another significant corporate adjustment mere months after a substantial wave of over 3,000 layoffs in July. The current restructuring appears focused on consolidating Xbox's internal studios and intellectual property, with the Halo franchise being a central element of this consolidation.
According to Matt Booty, Xbox's chief content officer, a new, dedicated team is being assembled under Activision to develop the next installment in the Halo series. This team will operate independently from ongoing Call of Duty development. Booty also confirmed that 268 employees are being laid off from Halo Studios and other Xbox divisions. A small contingent at Halo Studios will continue to provide support to the existing Halo community and live games. Booty indicated that Xbox is approximately 75 percent through its planned workforce reductions as part of this larger Xbox initiative.
In addition to Halo, Xbox World's Edge, the studio behind Age of Empires, and Rare are also being brought under the Activision umbrella. Rob Kostich, president of Activision, expressed enthusiasm for welcoming these studios, stating, "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 the ambition for the Halo franchise: "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 added that a specialized team is already being formed to lead this next chapter.
The Halo series has been developed by 343 Industries since 2007, with the studio leading development on titles including Halo 4, Halo 5: Guardians, Halo Infinite, and the recent Halo: Campaign Evolved remake. Despite some successes, the studio has faced layoffs and uncertainty in recent years, making today's announcement the effective end of its nearly two-decade run as the primary developer for the franchise.