Microsoft has put Activision in charge of developing the next Halo game through a new purpose-built team. The announcement arrived with another 268 job cuts across Halo Studios, other first-party studios, Xbox management, and central teams.

Xbox has not revealed the game’s title, release date, platforms, or creative leads. The company only confirmed who will build it and that the team is separate from Activision’s Call of Duty plans.

Who is making the next Halo game?

Activision will create a dedicated team for the project. Xbox did not name the studio, its leaders, or where the developers will be based, so it is too early to describe this as a normal Activision production or a Call of Duty-style Halo.

The new project is also separate from Halo: Campaign Evolved, the remake bringing the series to PlayStation. Xbox has not said whether Activision’s game will continue an existing story or begin something new.

Master Chief holds an Energy Sword in a forest scene from Halo Studios’ Project Foundry demonstration.
Project Foundry showed Halo running in Unreal Engine 5 in 2024. This is not Activision’s new game. Image: Halo Studios / Xbox.

What happened to Halo Studios?

Halo Studios is staying open with a smaller team. Xbox says it will continue supporting current Halo games and the community, but it did not explain how many employees are leaving the studio or which projects remain there.

The 268 eliminated roles are spread across Halo Studios, other first-party teams, Xbox Game Studios management, and central functions. Microsoft did not provide a studio-by-studio breakdown, so claims about a specific number of Halo layoffs would be guesswork.

Which Xbox studios are changing?

Activision is also taking responsibility for World’s Edge and Rare. Bethesda will oversee Obsidian, while Playground Games and Turn 10 are becoming one studio focused on Forza and Fable. King is adding Microsoft Casual Games to its group.

Microsoft says the changes, including divestitures announced since July, are about three-quarters complete. The company is presenting the moves as a simpler structure, but the immediate result is another round of people losing their jobs.

A Halo structure rises beside mountains, waterfalls, and forest in the Project Foundry demonstration.
Halo Studios used Project Foundry to explore the series in Unreal Engine 5. Xbox has not shown Activision’s game. Image: Halo Studios / Xbox.

What is happening to Ninja Theory and Arkane?

Ninja Theory faces the most uncertain outcome. Microsoft says two planned agreements fell through, and it has started employee consultation over a proposed closure while it looks at other options. Consultation at Arkane is continuing through the end of the year.

The situation fits a pattern we examined in our report on large companies buying studios and later cutting teams. A famous name can survive a reorganization even when the people who built it do not keep their roles.

What does Xbox still need to answer?

Halo fans still need the basics: who is leading the Activision team, what kind of game it is making, how Halo Studios is involved, and when players will see it. Employees need clearer answers about which teams and locations are affected by the 268 cuts.

A new developer can give Halo a fresh start, but today’s announcement is also a layoff story. Any excitement about the next game has to sit beside the cost of the restructuring that made this team possible.