Microsoft is overhauling its Xbox business in a big–and painful–way. Part of the effort to “reset” Xbox involves enlisting Call of Duty publisher Activision to make the next Halo game. This isn’t a spin-off or some kind of other extension of the iconic sci-fi series, but instead the next entry in the main series following 2021’s disappointing Halo Infinite.
Here’s what we know about Activision’s Halo game, and what comes next for Halo Studios.
What’s the new game?
The biggest question is what is the new Halo game from Activision? The announcement from Xbox chief content officer Matt Booty didn’t reveal any specifics, but a story from The Hollywood Reporter said it is a “full-feature, mainline installment” in the long-running series.
Activision boss Rob Kostich said in a statement to Game File that Activision is trying to make the “greatest Halo game ever.” He said the ambition is to make a game that is “worthy of its universe and legacy, while staying true to what made players love it in the first place.”
“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,” he added.
Who is developing the new Halo game?
Booty said Microsoft is putting together a “new, purpose-built team” to make the new Halo game at Activision. He also clarified that efforts to make the new Halo game at Activision are “separate from ongoing development and plans for Call of Duty.”
Despite years of speculation that a Call of Duty studio could be assigned to Halo, a new team is being spun up. It remains to be seen if Activision’s development of a new Halo game will have any impact on the Call of Duty franchise in terms of its established annual release schedule or if any key individuals will move from CoD development to Halo.
When can we expect the new Halo game from Activision?
Given the comments from Kostich about assembling a team to make a new Halo game at Activision, it appears it’s extremely early days for the game. As such, no one should expect to play it any time soon. Blizzard recently announced a new StarCraft shooter coming in 2030, while Bethesda revealed the unreleased Elder Scrolls 6 in 2018, showing that Xbox as a whole is not averse to confirming plans for games that could be a half decade or more away.
What’s happening to Halo Studios and its other games?
According to Booty, a “small team” at Halo Studios will “continue supporting the Halo community and games in-market.” Halo Studios is winding down significantly, with numerous staffers losing their jobs.
This is a major shift. People may recall that in October 2024, Microsoft announced that Halo developer 343 changed its name to Halo Studios and outlined plans for multiple new games. Additionally, Halo Studios confirmed that it would develop new Halo games with the Unreal Engine going forward, as opposed to its own proprietary Slipspace game development engine.
At the time, many Halo fans saw this as an exciting opportunity for Microsoft to help Halo regain some of its former glory after Halo Infinite missed the mark for many. Microsoft also installed new leadership at Halo Studios, following reports of management issues internally.
Halo Studios released its first game under that name, Halo: Campaign Evolved, in July 2026, but it was reportedly a commercial disappointment. People were also bewildered by the fact that a remake of the iconic first game had no multiplayer support. To date, it’s the one and only release from Halo Studios.
Given what Booty said about Halo Studios and its new charter, it seems likely that its in-development projects are dead. As for the shift to the Unreal Engine, Activision’s Call of Duty games are made with proprietary engines, so those plans could be over as well.
Some of the games said to have been in the works at Halo Studios included a new live-service game described as being “like Fortnite” and remakes of Halo 2 and Halo 3.
A Microsoft spokesperson declined to comment on the future of Halo Studios when approached by GameSpot.
Xbox CEO said making Halo popular again is a priority
At Gamescom this year, Xbox CEO Asha Sharma said the Halo franchise remains “very key” to Xbox and that the company was taking a long-term view about reviving it. “It represents a very key memory structure and way that people want to play,” she told the BBC. “I am focused on that. We’ll have more news to share on Halo going forward.”
Not everyone believes Microsoft can succeed at reviving Halo, including Halo’s own co-creator and the designer of Master Chief. Marcus Lehto recently said–prior to the news that Activision is making the next Halo game–that a “big concern” he foresees about reviving Halo is how much it might cost. He said Microsoft making a “fully featured Halo” game would likely cost between $600 and $800 million, and take four or more years to make.
Lehto, who hasn’t worked on Halo in a long time, said he does not anticipate Microsoft spending that much or taking that much time. Lehto also said a large corporation like Microsoft is a “terribly inefficient machine.” He added that a “smaller indie team driven by seasoned devs, filled with a good mix of newer hungry talent as well, and minimal management layers is probably the only viable way to make a great Halo again.”
Following the announcement that Halo is getting taken over by Activision, Lehto said he was “shocked but not entirely surprised.”
The human impact
Microsoft assigning Halo to Activision has led to pain for the people at Halo Studios. As mentioned, only a “small team” will remain at Halo Studios going forward to support Halo games already in the market. Other people are getting let go, including Halo’s esports producer and cinematic director Josh Daniels (who had just been promoted in the past week). Beyond Halo Studios, the 268 layoffs at Xbox this week hit other teams, including Gears of War developer The Coalition, and other parts of the Xbox team. Looking ahead, more Xbox layoffs are coming, and it’s prompted people to wonder: “What is Xbox Game Studios at this point?”
Xbox is focusing on franchises
Halo might not be as popular as it once was, but it carries brand recognition and is synonymous with Xbox. Microsoft was unlikely to abandon it completely, and in fact, the company reportedly already–some time ago–assigned Call of Duty developer Sledgehammer to conduct experiments with Halo. That effort has now graduated to Microsoft deciding to make a brand-new Halo game at Activision, so clearly the company sees potential.
Earlier this year, Sharma said one of the big bets that Microsoft made to help grow Xbox was developing a “broader portfolio of content.” That did not pay off in the way Microsoft expected, and Sharma made the decision to scale back significantly by laying people off, closing or divesting of studios, and cancelling a variety of games. This was all being done to “focus on higher-priority projects,” Sharma said, and clearly Halo is one of those, alongside Fallout, The Elder Scrolls, Call of Duty, Minecraft, Fable, and Forza, to name a few.
