Activision, the company behind Call of Duty, is taking over the Halo franchise as part of a large corporate restructuring plan by Xbox. As part of this big change for the long-running sci-fi shooter series, longtime Halo developer Halo Studios (formerly known as 343 Industries) will suffer another round of layoffs, and those remaining will act as a support team under Activision as it makes the next entry in the series.
On September 22, Xbox announced more layoffs and more big corporate changes only three months after a larger round of over 1600 cuts were made back in July. This time around, Xbox leadership seems focused on trying to consolidate its various studios and franchises even more, with one of the biggest shifts being to Xbox’s most famous franchise: Halo. As confirmed in a blog post from Xbox chief content officer Matt Booty, the next Halo game will now be developed by Activision. Booty says the next Halo is being created by “a new, purpose-built team that is separate from ongoing development and plans for Call of Duty.”
Booty also confirmed 268 layoffs across Halo Studios and other parts of Xbox. A small team at Halo Studios will now continue “supporting the Halo community and games in-market.” According to Booty, the planned layoffs Xbox announced and began implementing as part of its larger “reset” are now 75-percent complete.
“I am deeply grateful for what our colleagues have built,” wrote Booty in the memo. “And I know how difficult today will be for those leaving and the teams around them.”
Xbox is also moving World’s Edge (Age of Empires) and Rare under Activision, too.
“We’re thrilled to welcome Halo, Rare, and World’s Edge to Activision,” said Rob Kostich, Activision president. “It’s an honor and a responsibility that we do not take lightly. These teams and their games have inspired fans around the world for decades.”
“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,” said Kostich. “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.”
The Halo series has been in the hands of Halo Studios/343 Industries since 2007, with that team leading development on the first Halo remake, Halo 4, Halo 5: Guardians, Halo Infinite, and the latest remake of the OG game, Halo: Campaign Evolved, which launched earlier this year. While the team has had some success, in recent years, it has faced layoffs and an uncertain future.
Today’s news seems to essentially mark the end of the nearly 20-year-old studio’s run, with remaining staff now acting as a support team for Activision.