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Activision developing the next Halo game marks a historic change for one of Xbox’s most recognizable franchises. Microsoft announced the move on Sept. 22 as part of a wider restructuring of its gaming division.
A new, purpose-built team under Activision will lead the project. The group will operate separately from Activision’s ongoing work on the Call of Duty franchise.
Activision Developing the Next Halo Game
Xbox executive Matt Booty confirmed the change in an internal message published by Xbox Wire. The announcement did not identify the new Halo game’s title, release date or platforms.
However, The Hollywood Reporter reported that the project will be a full mainline entry. That description suggests it will be more than a remake, expansion or smaller spinoff.
Activision has decades of experience managing major action franchises. Its portfolio includes Call of Duty, Crash Bandicoot, Spyro the Dragon and Tony Hawk’s Pro Skater.
Microsoft acquired Activision Blizzard in 2023. As a result, Halo and Call of Duty now operate within the same broader corporate organization.
What Happens to Halo Studios?
Halo Studios, formerly known as 343 Industries, will remain active but with a smaller staff. According to Microsoft, the team will support existing Halo games and maintain its connection with the community.
The restructuring includes 268 job cuts across Halo Studios, other Xbox teams and management operations. Microsoft described the changes as part of a larger effort to reduce the number of business units.
Halo Studios had overseen the franchise since Bungie completed its final Halo title, Halo: Reach, in 2010. The studio later developed Halo 4, Halo 5: Guardians and Halo Infinite.
In 2024, 343 Industries changed its name to Halo Studios. The company also announced a move from its internal Slipspace Engine to Unreal Engine 5.
A New Chapter After Campaign Evolved
The leadership change follows the release of Halo: Campaign Evolved. Halo Studios developed the remake as a modern version of the original Halo: Combat Evolved campaign.
The game rebuilt Master Chief’s first adventure with updated visuals, refined controls and new missions. It also brought the franchise to PlayStation 5 for the first time.
Activision’s project appears separate from Campaign Evolved and other games already available. Microsoft has not explained whether the next title will continue the story of Halo Infinite.
The company also has not named the leaders or developers joining Activision’s Halo team. More information will likely arrive after the new group completes its initial planning.
What the Change Means for Halo
The move places Halo under an organization with extensive experience producing large first-person shooters. Activision’s Call of Duty teams have managed annual releases, online services and competitive multiplayer for years.
However, Microsoft specifically said the new Halo team will remain separate from Call of Duty development. That distinction may address concerns that Halo could simply adopt Call of Duty’s design or release model.
Halo has its own gameplay identity built around shields, vehicles, open combat spaces and science-fiction storytelling. Preserving those elements will be an important test for the new development group.
For now, Microsoft has only confirmed who will lead the next project. Its story, multiplayer plans and release window remain unannounced.
The transition represents Halo’s biggest development change since Microsoft moved the franchise from Bungie to 343 Industries. Fans across Texas and beyond can follow official Halo and Xbox channels for confirmed updates about Master Chief’s next mission.