Xbox’s latest reorganization appears to have ended one Halo game while sending the franchise’s future somewhere unexpected. Microsoft has confirmed 268 job cuts and said Activision is building the next Halo with a dedicated team. A separate report says the project Halo Studios had been making was canceled because it was still years away.
That report also says GTA 6 preorders are leaning heavily toward PlayStation 5. Microsoft has not released the preorder split, so the comparison is not official sales data. Taken together, though, the two stories show the pressure on Xbox as it cuts teams, shifts its biggest franchise, and tries to keep players invested in its console.
What did Xbox reportedly cancel?
Microsoft has not named the canceled Halo project. The report says most of Halo Studios was laid off and the studio’s next game was stopped after remaining years from release. A smaller group is expected to keep supporting Halo Infinite and Halo: Campaign Evolved.
This does not mean Xbox canceled Halo. It means the team formerly known as 343 Industries reportedly lost the game that would have followed its current work. Halo Studios had spent years moving the series to Unreal Engine 5, and its Project Foundry presentation was meant to show the visual direction behind that transition.
Is Activision’s Halo still happening?
Yes. Xbox Game Studios head Matt Booty said Activision is assembling a purpose-built Halo team that will operate separately from Call of Duty. Microsoft has not announced the game’s title, release window, platforms, or creative leads.
The move was first confirmed alongside the wider Xbox cuts. Our earlier report on Activision’s Halo team explains how the new group fits into the reorganization. The new report adds a missing piece: Activision did not simply join Halo Studios’ existing project. Xbox reportedly stopped that project and chose another route.
Why are GTA 6 preorders part of the story?
Grand Theft Auto VI launches on both PlayStation 5 and Xbox Series X|S on November 19, 2026. Rockstar has opened preorders on both stores, but the company has not published platform totals. The reported PS5 lead should therefore be read as an inside account, not a verified percentage.
Even without a public split, the report lands at an uncomfortable time. Xbox hardware revenue has been falling, and Rockstar’s official GTA 6 page promotes the game as playing best on PlayStation 5. A large PS5 advantage for the year’s biggest game would give undecided buyers one more reason to follow their friends onto Sony’s platform.
What does Xbox still need to prove?
Microsoft says the reset will give its studios clearer leadership and put major games in front of more players. Players are seeing the immediate cost: hundreds of jobs, Halo changing hands, and another canceled project attached to Xbox’s most recognizable series.
Activision’s new team could still deliver the Halo game fans want. Xbox now has to show why this version will succeed where the abandoned project did not—and whether its console can stay competitive when GTA 6 arrives.
