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Xbox has assigned development of the next Halo title to a new, purpose-built Activision team. It has not announced that Activision is taking over the whole franchise: a small team at Halo Studios will continue supporting the community and games already in-market. Xbox announced the change on September 22, 2026, as part of a broader restructuring.
Who is making the next Halo game?
According to Xbox executive Matt Booty’s September 22, 2026 announcement, an Activision team created specifically for the project will develop the next Halo title. Xbox said the team would be separate from Activision’s ongoing Call of Duty development and plans. The announcement did not name a release date, identify the game’s format, or provide further production details.
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The distinction matters: “Activision takes over Halo” overstates what Xbox announced. The stated assignment is development of the next title, not a transfer of every franchise responsibility.
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What happens to Halo Studios?
A small team at Halo Studios is to continue supporting the Halo community and games already in-market. Xbox did not say how many people will remain on that work, disclose a Halo-specific layoff figure, or explain how responsibilities will be divided between the Halo Studios team and Activision’s new group.
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Xbox separately said it was eliminating 268 roles across Halo Studios, other first-party studios, and Xbox Game Studios management and central functions. That is a company-wide figure across multiple units, not a count of Halo Studios job losses. Xbox also said actions completed since July—including studio divestitures—put it roughly three-quarters of the way through its previously announced restructuring. Those totals and progress claims are from Xbox, not independently verified workforce figures.
Why is Xbox restructuring its studios?
Xbox framed the September move as part of an effort to simplify operations and focus publishing expertise. Booty said the goal was “to strengthen our franchises and games by operating fewer business units, aligning groups that already work closely together, and focusing our publishing expertise.” That describes management’s rationale; the announcement does not establish that the changes will improve game quality, release schedules, or business performance.
The move follows a broader reset announced by Xbox executive Asha Sharma on July 6, 2026. Sharma characterized the business as unhealthy and said its margins were “3-10x lower than comparable platform and publishing businesses.” Xbox also said it lost 64 cents for every dollar invested in a typical year. These are Xbox’s descriptions of its own finances, not independent industry measurements or Halo-specific economics.
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- Planned workforce reductions and studio divestitures.
- Changes to investment and a simpler operating structure.
- Xbox’s description that some functions had as many as 14 management layers, alongside a goal of no more than five—and three where possible.
- A planned 50% reduction in vendor spending.
The management-layer figures and vendor reduction were announced as descriptions and targets. They do not establish that Xbox has completed those changes.
How the assignment fits Halo’s recent direction
In October 2024, Xbox said 343 Industries was becoming Halo Studios, described a studio reorganization, and announced that future Halo projects would use Unreal Engine 5. It also said multiple games were in development. That announcement positioned the reorganization as a way to change how the franchise’s games were made and support multiple experiences.
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The September 2026 announcement does not explain which projects announced in 2024 are continuing, whether their teams moved, or how they relate to the Activision-led title. It also does not say whether Unreal Engine 5 will be used for the next game. Those connections remain unconfirmed.
Xbox’s 2024 interview said Halo Infinite would continue to receive support through its existing engine, including Operations and Forge updates, at that time. That was a statement about plans in 2024, not confirmation of the game’s current support status.
What the announcement does—and does not—establish
| Question | What Xbox has said | What remains unspecified |
|---|---|---|
| Who develops the next title? | A purpose-built Activision team. | Team size, leadership, production details, and release timing. |
| Will Activision take over the entire franchise? | The announcement assigns development of the next title to Activision. | The longer-term division of franchise stewardship and other responsibilities. |
| What work remains at Halo Studios? | A small team will support the community and games already in-market. | Its size, specific responsibilities, and relationship to the Activision team. |
| How does this affect projects announced in 2024? | Xbox previously said multiple games were in development and future projects would use Unreal Engine 5. | Which projects continue and whether the 2024 technology and project plans apply to the next title. |
Why the shift matters beyond Halo
The assignment is notable because it places a major franchise’s next game with a purpose-built team at Activision while retaining a smaller Halo Studios group for ongoing support. It also demonstrates how Xbox’s stated plan to align groups and focus publishing expertise is being applied to a specific franchise. Whether the arrangement changes development outcomes cannot be determined from the organizational announcement alone.
The move also comes after Microsoft announced its acquisition of Activision Blizzard in January 2022. Microsoft then described the company’s franchises, player reach, publishing capabilities, and potential Game Pass contribution as reasons for the acquisition. Those were the company’s rationale and projections at the time; they do not show that the acquisition caused this particular assignment.
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