Halo moves to Activision under a new team as Xbox layoffs claim hundreds of additional jobs

Halo Combat Evolved Master Chief in a Mark V suit

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Last Updated: 22 September 2026

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Xbox has shifted the Halo IP to Activision Blizzard in a major move to cut costs across the Microsoft gaming division.

Following layoffs earlier this year, Xbox is cutting even more workers across Halo Studios, Rare, Obsidian Entertainment, Ninja Theory, and more.

As part of the ongoing changes, Halo Studios has been gutted with over 270 employees cut from the studio. While the named studio still exists, it will consist of a small team dedicated to the ongoing sci-fi universe’s expanded universe and continued lore.

Instead, Activision will now take charge of the Halo franchise, and the next Halo game will be led by a new, purpose-built team that is separate from ongoing development and plans for Call of Duty”.

Following the release of Halo: Campaign Evolved earlier this year, continued remakes were in development at Halo Studios, alongside a planned multiplayer title. However, with the shift from Halo Studios to a new team at Activision, it’s unknown if the previous remake trilogy will be continued.

While fans were not entirely on board with a second return to Halo 2, the fanbase has clamoured for a return to Halo 3. After all, the third game in the series—which is arguably the most beloved—is the only mainline entry in the original trilogy to not receive the Anniversary remaster treatment.

It’s also not known if the next Halo game will make use of the technology built by Halo Studios. While Campaign Evolved’s visuals were powered by Unreal Engine, the game was built atop the studio’s in-house Halo Engine to make sure that gameplay was kept as close to the feeling of prior games as possible.

While an Activision team could make use of that same technology, there’s also a possibility that the next Halo could be made on Activision’s in-house IW Engine, which is primarily used for Call of Duty.

Right now, the future of Halo as a games franchise is still up in the air. However, the franchise is still ongoing in its expanded media. Next month, Halo Studios is launching Parasite’s Wake, a new novel about Marvin Mobuto, the first marine to fight through The Library on the original Halo ring.

Additionally, Microsoft is also attempting to bring the Halo IP to the big screen with a live-action movie alongside The Elder Scrolls and other gaming brands.