The future of Halo has just taken a major turn. Xbox announced a new restructuring that includes the elimination of 268 jobs across Halo Studios, other first-party studios, and Xbox Game Studios management teams. But another part of the news surprised the community even more: Activision will be responsible for developing the next Halo game.

Microsoft explained that these changes are part of the Xbox “reset” announced in July, a process that includes around 3,200 job reductions during fiscal year 2027. According to the company, the measures are intended to reduce business units, simplify the organization, and focus on its main franchises.

Activision will develop the next Halo

This is one of the most unexpected changes. Activision will handle the next Halo title through a team created specifically for the project, separate from the teams currently working on Call of Duty.

That does not mean Halo Studios will disappear entirely. Xbox confirmed that a smaller team will continue working on the games already available and supporting the community.

For many players, it is striking to see a franchise historically associated with Xbox now placed under the direction of one of the studios Microsoft acquired in 2023.

What will happen to Halo Studios?

Halo Studios, formerly known as 343 Industries, has been the home of the franchise for years. Its role will now be much smaller while Activision takes the lead on the next major release.

The move comes after Halo: Campaign Evolved launched last July, making the reorganization even more notable.

Xbox is also reorganizing other studios

Halo is not the only franchise affected. Rare and World’s Edge will move under Activision, while Bethesda will expand its responsibility for Obsidian.

In addition, Playground Games and Turn 10 will be combined into a single studio focused on Forza and Fable.