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    Home»Apps»Microsoft guts Halo Studios as Activision takes over making the next Halo game
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    Microsoft guts Halo Studios as Activision takes over making the next Halo game

    By RepublisherSeptember 22, 2026No Comments2 Mins Read
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    Microsoft guts Halo Studios as Activision takes over making the next Halo game
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    Summary

    • Microsoft cuts 268 Xbox roles; says it’s roughly 75% through a painful restructuring.
    • Halo Studios gutted; Activision to make the next Halo while a small Halo team remains for support.
    • Xbox reshuffle: Obsidian keeps Grounded and an upcoming Fallout; King gets Casual Games; Playground+Turn10 on Forza/Fable.

    It has been a terrible year for people working in triple-A studios, as industry-wide layoffs have caused thousands to look for new jobs. However, Microsoft doesn’t seem to be done just yet. The company has gutted Halo Studios and handed the next Halo game to Activision, and the worst part is, we’re only 75% of the way done with the layoffs.

    Microsoft hands the controls for Master Chief over to Activision after gutting Halo Studios

    There are more layoffs on the horizon

    Over on the Xbox Wire, Microsoft has confirmed a new wave of layoffs inside the company. It says that it’s cutting “268 roles across Halo Studios, other first-party studios, and the XGS management and central functions layer,” bringing it “roughly three-quarters of the way through previously announced restructuring.”

    So, if Halo Studios has been hollowed out, who’s going to be making the next Halo game? Well, I’m glad you asked. In a section describing how Microsoft will reorganise its studios to align with its goals, the company details which division will take over the role of continuing its iconic sci-fi series:

    Activision will expand its remit to World’s Edge, as well as Rare. 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.

    The studio reorganisation sees Bethesda include Obsidian, which will continue working on Grounded and an upcoming Fallout game. King will be taking over Microsoft’s Casual Games section, and Playground and Turn 10 are coming together to work on the Forza and Fable franchises.

    Related

    Xbox CEO Asha Sharma doesn’t deny The Elder Scrolls 6 as a console exclusive, which is a little worrying

    Here’s hoping it’s a nothing burger.



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