Halo Franchise Shift
The next Halo game from Halo Studios was reportedly still years away from launch before Microsoft canceled it this week.
Microsoft continued its Xbox reset this week by gutting Halo Studios, leaving a skeleton crew to manage existing games in the series, and handing the Halo franchise to Call of Duty company Activision. Activision is setting up a new team to build the next mainline Halo game, leaving what remains of Halo Studios out of the picture.
Microsoft also moved Sea of Thieves developer Rare and Age of Empires developer World's Edge under the Activision umbrella as part of the studio shakeup. It made a very different call with the troubled Halo Studios, however, which has seen multiple Halo projects canceled.
According to reports, the next game under Halo Studios was years away from shipping, so Microsoft pulled the plug instead. The last mainline Halo game, Halo Infinite, launched nearly five years ago, in December 2021.
Studio Turbulence
Halo Studios has endured a tumultuous time in recent years, with significant leadership changes sparking questions about the future of the company and its games. Staff affected by this week's layoffs have spoken out across social media, with former employees citing relief after enduring difficult working conditions.
Microsoft obtained Halo when it acquired its original developer, Bungie, in 2000. After helping establish the Xbox console with Halo and Halo 2, Bungie split from Microsoft to become independent again in 2007. Meanwhile, Microsoft set up 343 Industries to take Halo into a new era.
2012's Halo 4 was the first Halo game released by 343. It was followed by 2015's Halo 5: Guardians, which in turn was followed by 2021's much-delayed Halo Infinite. Halo Infinite in particular struggled, and this year's Halo: Campaign Evolved, a remake of the beloved first Halo game, suffered problems of its own.
In 2024, 343 Industries changed its name to Halo Studios and announced plans to work on multiple new Halo games that would all be developed on Epic's Unreal Engine. The announcements were unveiled alongside Project Foundry, an experimental project designed to show a Halo game built using Unreal Engine as a fresh beginning for Xbox's flagship franchise.
Activision's Plans
Questions remain over what Activision plans to do with Halo now it is in charge of its fate. Microsoft has stated it is setting up a new, purpose-built team separate from ongoing development for Call of Duty. Microsoft has yet to announce when the next Halo game will arrive or whether Activision plans to reboot the series.
Xbox Games Series Tier List
Rob Kostich, president of Activision, issued a statement regarding the acquisition:
We are thrilled to welcome Halo, Rare, and World’s Edge to Activision. It’s an honor and a responsibility that we do not take lightly. These teams and their games have inspired fans around the world for decades.
For Halo, our goal is clear: make the greatest Halo game ever, worthy of its universe and legacy, while staying true to what made players love it in the first place. It is a bold ambition, one that this franchise deserves. We have already begun assembling a purpose-built team, unique in capability and talent, ready and excited to deliver this next chapter with the community.
To the World’s Edge and Rare teams, we can’t wait to get to work together.
Leadership is looking to double down on the company's biggest franchises, such as Fallout, Minecraft, and Halo, and release major new titles in those franchises more frequently.
