An early prototype for a proposed Halo multiplayer game involving Activision and Call of Duty developer Sledgehammer Games was reportedly canceled in early July, although Microsoft may still be exploring the partnership. This new rumor comes as Halo Studios undergoes a major transition, with multiple Halo projects being built in Unreal Engine 5.
The current state of Halo multiplayer makes the new report particularly interesting if recent leaks are to be believed. Halo Infinite remains the franchise’s primary competitive game nearly five years after release, with its matchmaking playlists still receiving updates in 2026. Meanwhile, July’s Halo: Campaign Evolved keeps the focus on single-player and cooperative play without recreating the original’s PvP multiplayer. The remake currently holds an 82 Metascore alongside a more divided 5.8 user score, leaving the identity of the next Halo multiplayer experience one of the franchise’s largest unanswered questions.
Halo Multiplayer Game From Call of Duty Studio Reportedly Canceled
According to a new video from known insider Rebs Gaming, Microsoft has explored having Activision help develop future Halo projects, potentially including a multiplayer game involving Sledgehammer Games. Rebs’ video aligns with earlier reports from Windows Central’s Jez Corden in July, who also said Activision was getting involved with the franchise. The source behind the claim previously supplied Rebs with accurate Campaign Evolved information, according to the insider, and says Activision began testing a Halo pitch prototype in June. Development reportedly remained at the “blockout” stage, testing basic mechanics like player movement, before the prototype was canceled in early July. Crucially, the proposed game was never fully greenlit.
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Image via Halo Studios -
Image via Xbox -
Image via Xbox
The Halo prototype’s cancellation does not mean the Activision proposal itself is dead. Rebs’ source claims Microsoft is still considering the collaboration, but no resulting project has been approved just yet. What’s more, the reported experiment is rumored to be separate from Halo‘s Project Ekur, another unannounced multiplayer project that was reportedly canceled in July after going through several different concepts. Ekur itself allegedly evolved from Certain Affinity’s long-rumored Project Tatanka, which began as a battle royale concept before going through several different iterations. Together, these abandoned prototypes and shifting concepts illustrate how many multiplayer directions Xbox has reportedly explored without announcing a successor to Infinite as the publisher continues to evaluate the franchise’s future.
Activision possibly getting involved also fits into a broader shift in how future Halo games could be developed. Rebs’ examination of Campaign Evolved‘s end credits identified roughly 15 external development and support studios, suggesting outside partners are already playing a substantial role in Halo Studios’ first Unreal Engine 5 release. Tapping a studio with Sledgehammer’s multiplayer shooter experience could theoretically give Halo Studios additional expertise without building another entire internal team, and onboarding could be easier because of UE5. Still, canceling such an early prototype suggests Microsoft is still experimenting with that development model rather than committing to it at this time.
For now, Halo‘s future remains largely a mystery. Another rumored canceled prototype adds to the uncertainty, but Microsoft’s reported interest in Activision could equally indicate that Xbox is actively testing different ways to strengthen the franchise. Halo Studios has publicly maintained that multiple projects are in development, while Campaign Evolved has now established its Unreal Engine 5 pipeline. Despite the Sledgehammer Halo game reportedly not progressing, the possibility of involving an Activision studio in Halo’s roadmap reportedly remains on the table. With Infinite years removed from launch and Campaign Evolved leaving PvP behind, whoever ultimately builds Halo‘s next competitive multiplayer game could play a major role in defining the franchise’s new era.
- Released
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July 28, 2026
- Developer(s)
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Halo Studios
- Publisher(s)
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Microsoft Studios
- Multiplayer
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Online Co-Op, Local Co-Op
- Cross-Platform Play
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Yes – all platforms
