Activision develops next Halo game after 268 Xbox layoffs at Microsoft
Microsoft cuts 268 Xbox jobs amid a wider restructuring. Multiple sources say the next Halo game is moving to a new team at Activision.
- According to multiple sources, the next Halo game is no longer being made at Halo Studios, but by a new team at Activision.
- Halo Studios will remain in place, but is expected to focus mainly on supporting existing Halo content and the community.
What happened
Microsoft intervened again in the Xbox organization on September 22, 2026. Reporting from Kotaku, IGN, GameSpot and Variety says 268 jobs are being cut across Halo Studios, other first-party teams and the central Xbox Game Studios layer. The move is part of a wider restructuring within Microsoft Gaming.
According to the same reports, Xbox boss Matt Booty told staff internally that the restructuring is now about 75 percent complete. In that context, several studio moves are also being mentioned, including World’s Edge and Rare under Activision, Obsidian under Bethesda, and Microsoft Casual Games under King.
The biggest content change is that the next Halo game is moving to Activision. Sources say a new team is being set up for it, separate from Call of Duty development. Halo Studios, the former 343 Industries, will remain in place but is expected to mainly support existing Halo content and the community.
Kotaku also reported that Ninja Theory is entering consultation over a proposed closure after two sales deals reportedly fell through. That development is separate from Halo, but it is part of the same round of changes at Microsoft Gaming.
Timeline
2024: 343 Industries is renamed Halo Studios.
2026-07: Microsoft/Xbox announces an earlier broader reset within its gaming division.
2026-07: Earlier reporting said Xbox had already cut around 1,600 developers in a previous round.
2026-09-22: Kotaku reports that Xbox is cutting 268 jobs as part of the ongoing reset.
2026-09-22: Microsoft is said to have told staff internally that the Xbox restructuring is about 75 percent complete.
2026-09-22: Activision is named as the developer of the next Halo game with a new team.
2026-09-22: Ninja Theory is reported to be entering consultation over a proposed closure after failed sale talks.
2026-09-30: End of fiscal Q1, mentioned in one source as a relevant point in the restructuring.
Background
This latest round is part of a longer reshaping of Microsoft Gaming. Earlier, Compulsion Games and Double Fine were made more independent within the Xbox structure, with their back catalogues and IPs moving with them. Undead Labs is also mentioned in the provided context as a studio that went through a similar transition.
The sources are not fully aligned on every detail around Halo, but the core picture is clear: Halo Studios is losing leadership on the next mainline Halo game and will mainly remain to support existing content. The exact size of the remaining teams and the schedule for Activision’s new Halo team have not been confirmed.
Related GAME-scanner articles
- Xbox says restructuring is not finished after 268 more layoffs
- Rare placed under Activision in IGN report on Xbox restructuring
- Obsidian Entertainment to fall under Bethesda in Xbox reset with 268 layoffs
Sources
- Kotaku: Xbox Lays Off 268 As 'Reset' Continues
- Variety: Xbox Lay Offs Continue; Activision to Develop Next 'Halo' Game
- IGN: Confirmed Microsoft Hands Halo to Call of Duty Developer Activision as Part of Huge Xbox Studios Shakeup