Xbox is handing development of future Halo games to Call of Duty publisher Activision as hundreds of jobs are cut and the company continues its sweeping gaming division reset.
Xbox is handing development of future Halo games to Activision as part of a major restructuring that has also seen hundreds of jobs cut across its gaming division.
The latest changes will see Activision, the publisher behind Call of Duty, take responsibility for developing future Halo games, while Halo Studios continues supporting existing titles and their communities.
Activision president Rob Kostich said the company had already begun assembling a dedicated team for the franchise.
Kostich said: “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.
“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 move represents a significant change for Halo, which has been central to the Xbox brand since the original game launched in 2001.
Halo Studios, formerly 343 Industries, will now focus on supporting existing games rather than leading development of the next mainline entry.
Gaming analyst Christopher Dring said the decision could help revitalise a franchise that was once considered Xbox’s “crown jewel”, while Windows Central’s Jez Corden described the change as a “dramatic move”.
The restructuring extends beyond Halo.
Xbox said Activision’s remit will also expand to include World’s Edge, the studio responsible for Age of Empires, and Rare, the developer behind Sea of Thieves.
The changes come alongside another 268 job cuts, adding to a wider wave of layoffs announced as part of Xbox’s ongoing restructuring.
In July, Xbox chief executive Asha Sharma announced plans for 3,600 job losses, with 1,600 employees immediately affected.
Xbox has also been unable to find a buyer for Cambridge-based Ninja Theory, the studio behind Hellblade.
Xbox chief content officer Matt Booty said two potential agreements had fallen through and that the studio would now enter consultation with employees over a proposed closure, although discussions with potential buyers remain open.
Elsewhere, Xbox is consolidating parts of its development structure, with Bethesda expanding its remit to include Obsidian and the studios behind Forza Horizon and Fable being combined.
For Halo, the next chapter will now be shaped by a new team under Activision.
The publisher faces the challenge of continuing a franchise with a long history while delivering the fresh start Xbox’s latest restructuring appears designed to create.
Activision to make next Halo game amid Xbox job cuts
