A report claimed that Xbox subsidiary Halo Studios may be down to just 20 staff members following a round of layoffs on September 22 that saw 268 jobs lost at the developer. The September job cuts were part of an ongoing restructuring process within Xbox, which the company stated was around three-quarters of the way done.
It’s no secret that Halo Studios was the hardest hit company in Xbox’s repertoire following the latest round of layoffs. Along with the jobs that were lost, Xbox announced that Activision would handle chief development of the Halo series moving forward. Xbox confirmed that Halo Studios would remain open as a supporting studio for the Halo community and for games already on the market.
Halo Studios Reportedly Down to Just 20 Staff Members
Although the Halo series will continue under Activision’s watch, Xbox’s restructuring plans have reduced Halo Studios to a fraction of what it once was. According to a claim from professional Halo player and content creator aPureGangster, which was reposted on Twitter by TechnicalHalo, Microsoft’s layoffs may have left Halo Studios with just 20 staff remaining after the layoffs. In aPureGangster’s words, the claim was said to come “from a very, very reputable source.” A separate claim in TechnicalHalo’s post stated that the entire team responsible for hosting the Halo Championship Series (HCS) also lost their jobs as part of Microsoft’s cuts.
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TechnicalHalo also stated in a separate post that Activision could reboot the Halo series entirely. The post claimed that all of Halo‘s established lore and storylines could be potentially reset by Activision. But given that Call of Duty: Modern Warfare 4 is set to launch on all current-gen platforms on Friday, October 23, the gaming giant is currently focused on getting its upcoming shooter onto store shelves. In short, players must wait for more information from Activision concerning the future of the Halo series.
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However, Halo Studios was not the only Xbox developer affected by the September 22 layoffs. Along with assuming developmental control over the Halo series, Xbox announced that Activision would also assume control of British developers World’s Edge and Rare, the respective developers of Age of Empires and Sea of Thieves. However, it is currently unclear if either Rare or World’s Edge were affected by the September job cuts. With Rare also claiming ownership of IPs such as Banjo-Kazooie and Killer Instinct, it remains to be seen what Activision’s plans are for the franchises it just gained control over.
Although former subsidiaries Double Fine and Compulsion Games successfully became independent studios and retained full control of their IPs, developer Ninja Theory has not had such luck in its endeavors. Despite the ongoing development of Senua, the third game in the Hellblade series, Ninja Theory is on the verge of closure after some planned agreements fell through. Xbox executive Matt Booty stated that Microsoft would begin a consultation process with the studio’s staff, per British law.
- 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
