Following Microsoft's acquisition of Activision Blizzard, a report suggests the tech giant explored leveraging one of its newly acquired Call of Duty studios, Sledgehammer Games, to assist with the Halo franchise. According to a report from Rebs Gaming, which has previously shared accurate unannounced Halo news, Sledgehammer Games was enlisted to help develop a Halo multiplayer game. The studio reportedly began working on a prototype in June, but the project was canceled in July, with testing limited to basic gameplay mechanics such as player movement. Despite the cancellation of this specific prototype, the possibility of a Call of Duty studio contributing to Halo is not entirely off the table. The report indicates that Microsoft is still considering the proposition but has not yet granted approval for any new projects. This exploration aligns with earlier speculation. In July, Windows Central reporter Jez Corden mentioned a rumor about Microsoft potentially placing Halo under the Activision umbrella as part of a broader restructuring aimed at revitalizing the franchise's potential. The Halo series has faced challenges in recent years, with many fans feeling that its output under 343 Industries has not matched the critical and commercial success of earlier installments developed by Bungie. The latest mainline entry, Halo Infinite, was met with disappointment by a significant portion of the player base. Similarly, the July remaster of the original Halo game, Halo: Campaign Evolved, did not resonate universally and faced criticism for its lack of multiplayer support, a sentiment echoed by the franchise's co-creator. The remaster also appears to have had a slow sales start. While no new Halo games have been officially announced, 343 Industries is reportedly working on a new multiplayer Halo title described as having a live-service approach similar to Fortnite.