Microsoft has announced a significant restructuring of its Xbox division, leading to the reassignment of the next mainline Halo game's development to Activision. Halo Studios, formerly known as 343 Industries, will no longer be the primary developer for future installments in the flagship franchise.
Instead, Activision will establish a "purpose-built team" to handle the next Halo title, operating separately from its ongoing work on the Call of Duty series. A smaller contingent at Halo Studios will remain to support the existing Halo community and currently available games.
This development comes as part of a broader wave of job cuts and studio consolidations within Microsoft. Halo Studios has been the custodian of the Halo franchise since Bungie's departure from Microsoft in 2007. Under its stewardship, the studio oversaw the creation of titles such as Halo 4, Halo 5: Guardians, Halo Infinite, and the recent remake of the original Halo: Combat Evolved, titled Halo: Campaign Evolved. The studio also contributed to other projects like Halo: The Master Chief Collection and the Halo Wars series.
The move marks a substantial change for the long-running science fiction shooter series, shifting its primary development reins to a studio with a different historical focus within Microsoft's gaming portfolio.