Halo Co-Creator Marcus Lehto

The franchise's original designer expresses his reaction to Microsoft's decision to move Halo development to Activision, citing the closure of Halo Studios and recent layoffs.

Sep 23, 2026
Game News
Halo Co-Creator Marcus Lehto

Halo co-creator Marcus Lehto has shared his thoughts on the recent announcement that the franchise will be moving to Activision, a move that follows significant consolidation within Microsoft's Xbox games division and a wave of layoffs.

"Shocked but not entirely surprised by the news of the Halo Studios closure and moving the franchise to an Activision team," Lehto wrote online. He added, "Wishing the best for all the developers who were affected by this decision. I, as well as you all, am eager to learn more about what’s next."

Activision has confirmed that a new, dedicated team will be established to handle the development of future Halo games, separate from the studios currently managing the Call of Duty series. Halo Studios will continue to operate, but with a reduced focus on new development, instead concentrating on supporting existing Halo titles and the player community. This restructuring comes as Microsoft seeks to revive Halo as a major franchise.

Lehto has previously spoken about the considerable cost and complexity involved in rejuvenating the Halo series. He has also been critical of past attempts to adapt the franchise, such as the Halo: Combat Evolved remake, which he felt was too focused on appealing to a modern audience with short attention spans. In August, Lehto outlined his vision for a potential reboot, describing a "darker" and "more grounded" Halo game that would prioritize a strong PvP component as the 'brains' and PvE as the 'heart and soul,' acknowledging that such a direction might not appeal to all players.

The recent changes at Xbox extend beyond Halo, with Playground Games and Turn 10 Studios merging, Ninja Theory facing an uncertain future, and Undead Labs, the developer of State of Decay 3, experiencing layoffs while also securing a new publisher.

Sources