In a significant shift for the Xbox ecosystem, Microsoft has confirmed that the next mainline entry in the Halo franchise will be developed by Activision. This transition marks a departure from the series' long-standing development history under internal Xbox studios. The announcement, made on September 22, 2026, coincides with a broader organizational restructuring across the company's gaming division.
Impact of the Xbox Studios Restructuring
Alongside the change in development leadership, Microsoft has confirmed a reduction in force affecting 268 employees. These layoffs impact staff across Halo Studios, various other first-party studios, and several management layers within the organization. The company stated that this move is part of an ongoing effort to realign its internal resources and development priorities.
Future of Halo Development and Support
Despite the transition to Activision, Microsoft has provided clarity on how the franchise will be managed moving forward. Matt Booty confirmed that the next Halo title will be handled by a new, purpose-built team. This team is intended to operate separately from the existing Call of Duty development pipeline, ensuring that the Halo project maintains its own dedicated focus and resources. Meanwhile, a small support team will remain at Halo Studios to manage the existing Halo community and provide ongoing maintenance for games currently in-market.
- Primary Developer: Activision (for the next mainline Halo title).
- Total Layoffs: 268 staff members across Halo Studios and management.
- Development Structure: A new, purpose-built team separate from Call of Duty.
- Ongoing Support: A small team remains at Halo Studios for in-market titles.
- Effective Date: September 22, 2026.
This restructuring represents a major pivot in how Microsoft manages its most iconic intellectual property. By moving development to Activision while maintaining a specialized support unit at Halo Studios, the company is attempting to balance the need for fresh development resources with the necessity of maintaining the existing player base. Players should expect further updates regarding the specific composition and timeline of this new development team as the project progresses under its new leadership structure.