Microsoft has announced a significant restructuring of its gaming studios, which includes handing the reins of the Halo franchise to Activision. This move comes as part of a broader 'Xbox reset' that saw the gutting of Halo Studios, leaving a skeleton crew to manage existing games in the series.
Activision is now tasked with establishing a new team to develop the next mainline Halo game, effectively removing what remains of Halo Studios from the development pipeline. The Verge reports that the next game from Halo Studios was still years away from release, prompting Microsoft to "pull the plug." Halo Infinite, the last mainline entry in the series, launched in December 2021.
This organizational shift also places Sea of Thieves developer Rare and Age of Empires developer World's Edge under the Activision umbrella. Halo Studios has experienced considerable turmoil in recent years, marked by leadership changes and canceled projects, leading to staff expressing relief following the layoffs.
Microsoft acquired the Halo intellectual property when it purchased Bungie in 2000. Bungie later separated from Microsoft in 2007. In 2012, 343 Industries, named after a character from the Halo games, took over the franchise, releasing Halo 4, Halo 5: Guardians, and the troubled Halo Infinite. A remake of the first Halo game, Halo: Campaign Evolved, also reportedly faced development issues.
In 2024, 343 Industries rebranded as Halo Studios and announced plans for new Halo games developed on Unreal Engine, showcased through a tech demo called Project Foundry. This initiative aimed to signal a fresh start for the franchise following Halo Infinite's difficult launch.
The future of Halo under Activision's stewardship remains to be seen. Microsoft has stated that Activision is forming a "purpose-built team that is separate from ongoing development and plans for Call of Duty." Details regarding the release window for the next Halo title or Activision's approach to the series—whether it will involve a reboot or be integrated into their annual Call of Duty release schedule—have not yet been provided.
Rob Kostich, president of Activision, expressed enthusiasm for the acquisition, stating, "We’re thrilled to welcome Halo, Rare, and World’s Edge to Activision." He added that the company's goal for Halo is to "make the greatest Halo game ever, worthy of its universe and legacy." Activision has begun assembling a specialized team for this endeavor.
New Xbox CEO Asha Sharma aims to increase the frequency of major releases from key franchises like Halo, Fallout, and Minecraft, potentially drawing inspiration from Activision's consistent annual Call of Duty releases.