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Xbox has assigned development of the next Halo title to a new, purpose-built Activision team. A small team at Halo Studios will continue supporting the community and Halo games already in-market. The announcement is a change in who is making the next game—not a statement that Activision has taken over every part of the Halo franchise.
Who is making the next Halo game?
In a September 22, 2026 memo, Xbox executive Matt Booty said Activision would develop the next Halo title with a new team built for the project. Xbox said that team would be separate from Activision’s ongoing Call of Duty development and plans. The memo did not identify the game’s title, genre, release date, platforms, or launch window. Xbox’s announcement
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That makes “Activision takes over Halo” an overstatement. The confirmed assignment is development of the next title. Xbox did not announce that Activision would assume all franchise stewardship, take over every Halo project, or replace Halo Studios across ongoing work.
What changes—and what stays with Halo Studios?
Xbox said a small team at Halo Studios would continue supporting the Halo community and games already in-market. The announcement did not disclose that team’s size or specify which current games, updates, or community activities it will handle.
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The division of work announced so far is therefore limited: Activision’s purpose-built team is responsible for developing the next title, while a small Halo Studios team continues existing-game and community support. Xbox did not describe how future franchise decisions will be shared between the groups.
Why did Xbox make the change?
Booty placed the assignment within a wider Xbox reorganization. He said its 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.” Those are Xbox’s stated aims; the memo does not provide independent evidence that the restructuring will improve game quality, release timing, or business results. Xbox’s September 2026 memo
The move also follows a larger reset Xbox outlined in July 2026. Xbox executive Asha Sharma called the business “not healthy” and said its margins were “3-10x lower than comparable platform and publishing businesses.” Xbox also said that, in a typical year, it had lost 64 cents for every dollar invested. These are the company’s descriptions of its own business, not independently verified industry measurements or Halo-specific financial results. Xbox’s July 2026 memo
The July plan included workforce reductions, studio divestitures, changes to investment, and a simpler operating structure. Xbox said some parts of the company had as many as 14 management layers and set a goal of no more than five, or three where possible. It also planned to reduce vendor spending by 50%. Those were targets and descriptions in the July announcement, not confirmation that the changes have been completed.
What do the job cuts mean for Halo Studios?
Xbox said it was eliminating 268 roles across Halo Studios, other first-party studios, and Xbox Game Studios management and central functions. It did not say how many of those roles were at Halo Studios, identify affected teams, or state the resulting size of the studio. The figure is Xbox’s announcement, not an independently verified workforce count.
The September memo also said actions completed since July, including studio divestitures, put Xbox roughly three-quarters of the way through its previously announced restructuring. That is Xbox’s status estimate; it does not mean the remaining work or its effects on individual studios were detailed.
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How does the assignment fit Halo’s recent direction?
In October 2024, Xbox announced that 343 Industries was becoming Halo Studios, described a studio reorganization, and said future Halo projects would use Unreal Engine 5. The announcement also said multiple games were in development and framed the changes as a way to support multiple experiences. Xbox’s 2024 Halo Studios announcement
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The 2026 memo does not explain which of those earlier projects remain active, whether their teams have moved, or how the Activision-led title relates to every project mentioned in 2024. It also does not say whether the next title will use Unreal Engine 5. The earlier technology direction is context, not confirmation of the new project’s engine.
Xbox’s 2024 interview said Halo Infinite would continue receiving support through its existing engine, including Operations and Forge updates, at that time. That statement describes the plan in 2024; it does not establish Halo Infinite’s support status in 2026.
What is confirmed, and what remains unanswered?
| Question | What Xbox has said | What remains unannounced |
|---|---|---|
| Who develops the next title? | A new, purpose-built Activision team, separate from ongoing Call of Duty development and plans. | The team’s composition, the game’s title, and its release details. |
| What does Halo Studios do? | A small team continues community and in-market game support. | The team’s size and its exact responsibilities. |
| What happens to projects discussed in 2024? | Halo Studios had said multiple games were in development and future projects would use Unreal Engine 5. | Which projects continue, how they relate to the Activision assignment, and the next title’s engine. |
| Does Activision take over the franchise? | Xbox assigned development of the next title to Activision. | Any broader transfer of franchise stewardship; the announcement does not specify one. |
Why the shift matters beyond one game
The announcement is notable because Xbox is assigning a major franchise’s next title to a purpose-built team outside the studio that had recently been reorganized around Halo. At the same time, Xbox has said Halo Studios will retain a continuing support role. That combination signals a change in how the next game is staffed and organized, but it does not establish a new permanent model for every Halo project or other Xbox franchises.
Microsoft’s January 2022 announcement of its Activision Blizzard acquisition described the company’s franchises, player reach, publishing capability, and potential Game Pass contribution as reasons for the deal. Those were Microsoft’s rationale and projections at the time; they do not show that the acquisition caused the Halo assignment in 2026. Microsoft’s January 2022 announcement
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