Microsoft has officially announced a major change to its Halo franchise, as Activision will develop the next game in the series with a new, purpose-built team. A small team at Halo Studios will continue to support the Halo community and existing games. The new studio will also exist separately from the group of developers that work on the annual Call of Duty series.
“For Halo, our goal is clear: make the greatest Halo game ever, worthy of its universe and legacy, while staying true to what made players love it in the first place,” Activision president Rob Kostich said in a statement. “It is a bold ambition, one that this franchise deserves. We have already begun assembling a purpose-built team, unique in capability and talent, ready and excited to deliver this next chapter with the community.”
Unfortunately, it’s bad news for Halo Studios, as Microsoft has confirmed that it will be impacted by a new wave of layoffs that it had previously announced. In total, 268 people will be laid off across Halo Studios, other Xbox developers, and Xbox Game Studios management. As reported earlier today, studios are also being reorganized under Microsoft’s biggest acquisitions, Bethesda and Activision Blizzard.
“The goal is to strengthen our franchises and games by operating fewer business units, aligning groups that already work closely together, and focusing our publishing expertise,” Xbox chief content officer Matt Booty wrote in a letter sent to Xbox employees.
Alongside Halo Studios, World’s Edge (Age of Empires series) and Rare (Sea of Thieves) will also fall under the Activision umbrella. Obsidian Entertainment and its projects–including a new Fallout game–will fall under Bethesda’s remit, while Playground and Turn 10 will merge into a single studio after years of being creative partners on games like Forza and the upcoming Fable.
Rumors of Activision Blizzard being enlisted to help out on Halo began circulating earlier this year, when it was claimed that Call of Duty studio Sledgehammer Games had begun working on a Halo multiplayer prototype in June, but it was reportedly canceled in July.