A "purpose-built" team separate to Call of Duty will handle it.

Halo Studios (formerly 343 Industries) won't develop the next mainline Halo game because it's being what sounds like drastically reduced in size. Microsoft has instead given development duty to Activision, which is making "a new purpose-built team" separate to Call of Duty to make it.

"We are eliminating 268 roles across Halo Studios, other first-party studios, and the XGS management and central functions layer," Xbox Studios boss Matt Booty wrote in a statement. "Activision will also be developing the next Halo title, led by a new, purpose-built team that is separate from ongoing development and plans for Call of Duty. A small team at Halo Studios will continue supporting the Halo community and games in-market," Booty wrote.

In a statement provided to Kotaku, Activision president Rob Kostich said: "We're thrilled to welcome Halo, Rare, and World's Edge to Activision." (Rare is also going to Activision.) "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. 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 news arrives as part of another wave of major Microsoft Xbox restructuring, which has seen hundreds more people lose their jobs, British studio Ninja Theory close, and studios like Obsidian and Rare, as mentioned, consolidated into being controlled by others.

The Halo series, originated by Bungie, was overseen by 343 Industries/Halo Studios ever since Bungie bought its independence from Microsoft in 2007. Halo Studios (it rebranded in 2024) made a number of mainline Halo games, including 2012's Halo 4, 2015's Halo 5: Guardians, 2021's Halo Infinite, and most recently the reboot of Halo 1, Halo: Campaign Evolved.

Halo Studios also collaborated on every other Halo project, including 2014's Halo: The Master Chief Collection and the Halo Wars games. This move by Microsoft is, then, a significant departure for the Halo series.

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