Activision assumes control of Halo in major Xbox studio reorganization
Microsoft is gutting its internal studio structure, offloading the development of the flagship Halo franchise to Activision. The move follows months of turbulence at Xbox, including the termination of 1,600 employees earlier this year and the planned closure of Ninja Theory as part of a fresh round of 268 layoffs.
The transition marks a definitive end to the internal era of Halo Studios, formerly known as 343 Industries. While the studio will retain a skeleton crew to support Halo Infinite and existing titles, the next major entry in the series will be built by a dedicated team within Activision, distinct from the Call of Duty development pipeline. This shift occurs less than two years after the franchise migrated to Unreal Engine 5.
Activision president Rob Kostich signaled a clean break, claiming the company is assembling a purpose-built team to revitalize the series. Beyond Halo, the restructuring pulls the Sea of Thieves and Age of Empires franchises under the Activision umbrella. World’s Edge, the studio responsible for Age of Empires, will now operate under this reorganized division. Xbox chief content officer Matt Booty confirmed that these structural changes are intended to consolidate resources, though the human cost remains high with nearly 300 additional staff members facing redundancy.
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