The recent Xbox reshuffling has many questioning the future of the company’s biggest studios, and a new insider claim states that while Halo is safe, the company is reevaluating the development studio’s direction. Halo has been Xbox’s bread-and-butter franchise for over two decades, but recent releases have left the series in an odd place with fans.
As Xbox enters its next 100 days under new management, several cuts and closures are reportedly on the horizon for some of the most notable studios under its umbrella. The rumor mill is circulating whispers that Arkane is shutting down and canceling its Blade project, while the beloved Obsidian Entertainment could be on the chopping block as well. Of the many studios Xbox has, Halo Studios has certainly been one of the most turbulent therein, as multiple higher-ups at the company have left following Halo Infinite‘s shaky post-launch period, and the studio rebranded away from 343 Industries in 2024 to signal a “fresh start.” Given Halo‘s tough last few years, fans have been wondering what the status of the franchise will be as Xbox reevaluates its current portfolio.
Xbox May Be Changing How Halo is Run, According to a New Insider Report
Notable Xbox insider Jez Corden has been reporting on the Xbox layoff situation, claiming that Obsidian is currently fine and, in response to a question about Halo Studios’ future, stating that the studio is not in danger of closure, but that Xbox is “very, very, very, heavily evaluating how Halo is run.” Corden also claims that some of the recent cutbacks at Xbox are to reallocate resources to fixing Halo, given that the studio hasn’t been on the best footing lately. In a later post, Corden also says he expects Halo Studios to potentially outsource the IP and let other developers have a go at it, namely the studios involved with Call of Duty, but that is simply a prediction.
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Corden’s claims could mean several things, including a change of management if newer projects like Halo: Campaign Evolved miss the mark or if internal projects like the mysterious Halo Project Ekur don’t hit internal targets. Rumors of a Destiny-style Halo MMOFPS have started to pop up from notable leakers as well, which could indicate that Xbox might even be planning to take the Halo universe in an entirely new direction. As far as Halo needing some fixing goes, it could be tough to tell what Xbox would want from Halo Studios going forward, since Halo Infinite didn’t quite hit the original “ten-year Halo” plan, and the direction of the next mainline game remains a question as the studio explores remakes and offshoot multiplayer experiences.
While the sentiment toward fixing Halo sounds like a good start for the revitalized Xbox, it seems like the publisher has been working to fix the franchise for years now. Since Halo 4 launched as the first game not led by Bungie, it has been a struggle for Halo Studios to have one game be a universally acclaimed hit with fans and critics. Halo 5 was perhaps the biggest miss in the whole Halo Studios lineup, but even the redemptive Halo Infinite squandered its goodwill with fans due to bare-bones post-launch content and significant tech issues stemming from the Slipspace Engine. Halo Infinite recently ended its post-launch support in 2025 after four years of updates.
Where Halo goes from here is anyone’s guess. Halo Studios seems poised to remake the entire original Halo trilogy in Unreal Engine 5, with Halo: Campaign Evolved right around the corner, but many fans want more than remakes from the franchise. There is a lot of tinkering with the series going on at Halo Studios, if recent rumors are to be believed, and now that Xbox is allegedly reevaluating how the studio is run, hopefully that means the franchise gets a clear direction for its future.
