Xbox recently announced another wave of layoffs and significant structural changes, including the decision to shift the development of the Halo franchise to Activision. Concurrently, Halo Studios, formerly known as 343 Industries, experienced substantial layoffs, leading to a number of former developers sharing their reactions.
Microsoft executive Matt Booty confirmed in a memo that over 250 jobs were cut across the company, with many affected at Halo Studios. The layoffs included long-serving Halo veterans and even some employees who had been promoted the day prior. Crucially, Halo Studios will no longer develop the mainline Halo games. Instead, a new team within Activision will lead future franchise development, leaving the remaining Halo Studios staff to function as a support studio for the series.
This news has elicited strong emotional responses from former Halo developers. Kiki Wolfkill, a former executive producer at Halo Studios, posted on LinkedIn, expressing that the news was "gutting" and sending support to those impacted. She acknowledged the talent and dedication of the teams and the profound effect these decisions can have on individuals and their families.
Marcus Lehto, co-creator of Halo, shared on Twitter that he was "shocked but not entirely surprised" by the events. He wished the best for all affected developers and, like many others, expressed eagerness to learn more about what the future holds for the franchise.
Bonnie Ross, who led Halo Studios for many years, described waking up to the news that Halo Studios had been "essentially shut down" as difficult. She highlighted the impact on hundreds of talented individuals across various disciplines, including creatives, designers, engineers, artists, and narrative specialists, all of whom had poured their passion into Halo.
Former Halo art director Horia Dociu also shared his thoughts, calling the situation "heartbreaking" given the talent and hard work of the employees. He sent "good vibes" to his former colleagues at Halo Studios as they navigate this significant shift.
Brad Hilderbrand, a former senior PR manager for Halo, conveyed a mix of sadness and anger regarding the layoffs and the restructuring. He stated that seeing the studio, which he joined because of its dedication to Halo, reduced to a state where its primary function might be server maintenance until eventual closure, is "absolutely brutal."
Hilderbrand lamented the perceived devaluation of Halo, calling it the "crown jewel" of Xbox that is now being "functionally thrown in the garbage." He extended his condolences to the former Halo team members and others affected, emphasizing their talent and the injustice of their situation. He also expressed uncertainty about the future, acknowledging the difficult state of the industry, and stated, "I wish I could tell you that everything will be fine and you’ll land on your feet given your immense talent, but the industry is a mess right now and I honestly don’t know what’s going to happen next."