Activision Taking Over Halo: What's Confirmed So Far
Microsoft confirmed yesterday that Activision is taking over Halo, with the Call of Duty publisher developing the next flagship game in the franchise through a team built specifically for that job. Halo Studios, the current caretaker of the series, isn't building that next game and instead shifts into a support role for existing titles. The confirmation came from an internal memo by Xbox chief content officer Matt Booty, shared by The Verge.
Halo Studios, the team formerly known as 343 Industries, keeps a smaller team supporting Halo Infinite and Halo: Campaign Evolved, according to The Verge and the BBC.
The announcement lands alongside 268 job cuts spread across Halo Studios, other first-party studios, and Xbox Game Studios' central management layer, not a Halo-specific layoff figure, according to The Verge and Variety.
Here's what the memo locks in, what it leaves open, and what it means for anyone currently playing Halo.
What Activision's Halo franchise takeover actually covers
Booty's memo states that Activision will develop the next Halo title "led by a new, purpose-built team that is separate from ongoing development and plans for Call of Duty," according to The Verge and Polygon.
Activision president Rob Kostich said the company has "already begun assembling" that team and wants to make "the greatest Halo game ever" while staying "true to what made players love it in the first place," per the BBC.
Microsoft described the change in operational terms. Booty frames the broader goal as "operating fewer business units, aligning groups that already work closely together, and focusing our publishing expertise," according to Variety.
The announcement did not identify a creative director, engine, release window, or platform list for the new game. Kostich's "greatest Halo game ever" line is a statement of intent from Activision's president, not evidence of what the team is actually building or how far along it is.
Halo Studios' new role: oversight, development, and support aren't the same thing
Halo Studios will be reduced to what Booty's memo calls "a small team" focused on "supporting the Halo community and games in-market," rather than leading new flagship development, according to The Verge and Variety. Halo Infinite and Halo: Campaign Evolved, which released in July, will keep getting support from that remaining team, per the BBC. Halo Studios is named as one of the groups significantly affected by the 268 newly announced layoffs, though no breakdown of exactly how many Halo Studios roles are being cut has been published, according to Ars Technica.
That leaves three distinct layers, and the reporting only confirms the split between them, not the details inside each one. Activision now holds franchise oversight for Halo, meaning it controls where the series goes next. Activision also holds development leadership for the next mainline game specifically. Halo Studios keeps only live-game support, meaning it maintains what already shipped. None of the current reporting includes a season schedule, a content roadmap, a patch cadence, or a stated headcount for the remaining Halo Studios team. Anyone tracking either game's future updates is working from confirmed continuity of support and nothing more specific than that.
Activision takes control of Sea of Thieves and Age of Empires too
Halo isn't the only franchise changing hands. Activision's remit is expanding to oversee Rare, the studio behind Sea of Thieves, and World's Edge, which makes Age of Empires, according to the BBC and Ars Technica.
Rare's UK development team specifically is joining the Activision side of Xbox, a concrete organizational move rather than a vague statement about oversight, per The Verge.
None of the reporting details what this means for either franchise's release schedule or content plans going forward. The organizational change is confirmed; the creative and roadmap implications for Sea of Thieves and Age of Empires players are not addressed in any of the current coverage.
The Halo layoffs fit a bigger Xbox reorganization pattern
The Verge describes this week's cuts as the second round of Xbox layoffs this year, adding that it might not be the last.
That follows a July restructuring that Xbox chief executive Asha Sharma called "the most significant restructure in Xbox history," according to the BBC. That round cut 1,600 jobs immediately, amid 3,600 planned losses overall, and spun off five studios, including Hellblade developer Ninja Theory, per the same report. The Verge's reporting adds that Ninja Theory is likely heading toward closure, though that's The Verge's characterization rather than a confirmed shutdown.
Separately, Microsoft has said 3,200 roles are set to be affected by Xbox cuts across its 2027 fiscal year, which runs through June 2027, according to The Verge. That figure comes from a different announcement than the 3,600 planned losses tied to July's restructuring, and the two totals may not describe the same scope of cuts. With this week's 268 cuts folded in, The Verge puts the running total at nearly 1,900, leaving more than 1,000 roles still unaccounted for against that fiscal 2027 guidance. Microsoft describes itself as "roughly three-quarters of the way through" the restructuring it previously announced, per the same report.
What remains unannounced
Team size, leadership names, engine, release window, and platforms for the next Halo game are all absent from this week's announcement. The reports also don't describe any concrete impact on Sea of Thieves or Age of Empires development plans, and they do not identify a timeline for when those specifics might arrive.
For now, Halo Infinite and Halo: Campaign Evolved keep receiving support through Halo Studios' smaller team, with no indication that support is ending. The next flagship Halo game has a development home at Activision, but no confirmed release timing, platform list, team leadership, or gameplay direction to go with it.



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