Activision Takes Over the Next Halo Game as Xbox Cuts 268 Roles

Microsoft is making another major change to its Xbox game-development structure, with Activision now set to develop the next Halo title. The move comes alongside 268 additional role eliminations across Halo Studios, other first-party studios, and the Xbox Game Studios management and central functions.

The changes are part of Microsoft’s broader Xbox restructuring, which began in July 2026. In its latest announcement, Microsoft said the work completed since July, including studio changes, has brought the previously announced restructuring roughly three-quarters of the way toward completion. Xbox’s official announcement outlines the latest changes.

Activision Will Develop the Next Halo

Microsoft says Activision will develop the next Halo title through a new purpose-built team. The team will be separate from the people working on Call of Duty, meaning the next Halo project won’t be folded directly into the existing Call of Duty development operation.

The announcement marks a shift from the previous structure, in which Halo development was centred at Halo Studios, formerly known as 343 Industries. Microsoft has not announced the name, size or location of the new Activision team working on the next Halo game.

The change also does not mean Halo Studios is disappearing entirely. Microsoft says the remaining Halo Studios organisation will continue supporting existing Halo games and the Halo community, while Activision takes over development responsibility for the next main title.

Halo Studios Had Already Been Changing

The latest restructuring follows a major transformation at Halo Studios that began before Activision was assigned responsibility for the next game. In 2024, Microsoft announced that 343 Industries had been renamed Halo Studios and that future Halo projects would move to Unreal Engine 5.

Microsoft’s announcement about Halo Studios and Unreal Engine 5 said multiple new Halo projects were in development. The studio described the transition as a change to its development technology, team organisation, and production approach.

Halo Studios’ currently announced project was Halo: Campaign Evolved, a ground-up remake of Halo: Combat Evolved. The official Halo announcement confirmed its July 28, 2026 release on Xbox Series X|S, PC and PlayStation 5.

268 More Xbox Roles Are Being Eliminated

Microsoft says it is eliminating 268 roles across Halo Studios, other first-party studios, and the Xbox Game Studios management and central functions layer.

The cuts are part of a larger restructuring announced earlier in the year. In July, Xbox said it planned to reduce its workforce by approximately 3,200 positions during fiscal 2027, including approximately 1,600 immediate role eliminations. Xbox’s July restructuring announcement also described changes involving several studios.

Microsoft has not attributed all 268 role eliminations to Halo Studios. The company identifies Halo Studios as one of the affected groups but says the total also includes other first-party studios, Xbox Game Studios management, and central functions.

Activision’s Role Inside Xbox Is Expanding

The Halo change is part of a wider expansion of Activision’s responsibilities within Microsoft’s gaming organisation. Xbox says Activision will also take responsibility for World’s Edge and Rare.

That places several major Xbox franchises and studios closer to the Activision organisation. World’s Edge is responsible for the Age of Empires franchise, while Rare is known for properties including Sea of Thieves.

The changes follow Microsoft’s acquisition of Activision Blizzard King, which was completed in October 2023. Microsoft’s announcement welcoming Activision Blizzard King to Xbox said the acquisition brought major console, PC and mobile publishing capabilities into Microsoft’s gaming business.

Why Microsoft Is Changing the Structure

Microsoft says the restructuring aims to run fewer business units, align groups that already work closely together, and concentrate publishing expertise. The company also says the changes are intended to strengthen its franchises and games.

The same restructuring is affecting other parts of Xbox. Obsidian Entertainment is moving under Bethesda, while Microsoft is combining Playground Games and Turn 10 Studios into one organisation focused on Forza and Fable.

King is also taking responsibility for Microsoft’s Casual Games business. Meanwhile, several studios have moved toward independent ownership or management arrangements as Microsoft reduces the number of organisations operating directly within Xbox.

What Happens to Existing Halo Games?

Microsoft’s announcement distinguishes the new Activision-led development team from the existing Halo Studios organisation. The remaining Halo Studios team will continue supporting existing games and the player community.

That means the organisational change does not by itself indicate that current Halo games will stop receiving support. Microsoft did not announce a separate change to existing support plans in its September restructuring statement.

The company has also previously said that Halo Infinite would continue receiving online and LAN competition support during the transition toward future Halo projects.

The Next Halo Game Is Still Largely Undisclosed

Microsoft has confirmed who will develop the next Halo title, but it did not provide the game’s name, release date, platforms, story details, or gameplay information in the restructuring announcement.

That leaves the new Activision-led project separate from the already announced Halo: Campaign Evolved. Halo Studios’ official project page currently identifies Campaign Evolved as its announced upcoming project and also highlights Project Foundry, its research work around Unreal Engine 5 and future Halo development.

Halo Studios’ official page provides the current public information about its projects and development work. More details about Activision’s new Halo team will need to come from Microsoft or the developers involved.

A Significant Shift for Xbox’s First-Party Studios

Moving the next Halo game to Activision is one of the clearest examples yet of Microsoft’s effort to reorganise how it manages its first-party franchises. Instead of keeping every major property within its original Xbox Game Studios structure, Microsoft is increasingly grouping development responsibilities across larger organisations.

The September changes affect Halo, Forza, Fable, Age of Empires, Sea of Thieves and other parts of the Xbox portfolio. They also come alongside job reductions and changes to the ownership or management of several studios.

For Halo specifically, the immediate change is clear: Activision will develop the next title through a new purpose-built team, while Halo Studios continues supporting existing games and the community. The details of the new game’s development remain undisclosed.

Final Verdict

Microsoft’s latest Xbox restructuring moves the next Halo game’s development into Activision while reducing the size of Halo Studios and other Xbox organisations. The company says the new Halo team will be separate from its Call of Duty development plans.

The decision follows several years of changes to Halo’s development structure, including the transition from 343 Industries to Halo Studios and the move to Unreal Engine 5. It also comes as Microsoft reorganises other major Xbox studios around fewer business units.

For now, the confirmed information is limited to the new organisational structure. Microsoft has not yet revealed the next Halo game’s title, release timing or detailed gameplay plans, leaving those details for a future announcement.