CONFIRMED: Microsoft Hands Halo to Call of Duty Developer Activision as Part of Seismic Xbox Studios Shakeup

Microsoft has officially announced that developer Activision will take over the creation of the next mainline Halo game, following a significant restructuring at Xbox Studios. This move comes as part of the company's ongoing efforts to streamline its gaming business, with 268 layoffs announced across various first-party studios, including Halo Studios.

The restructuring, led by new Xbox boss Asha Sharma, has already resulted in 1,600 job losses this financial year, with another 1,600 expected. In a blog post, Xbox Chief Content Officer Matt Booty expressed gratitude for the work done by the colleagues affected by the layoffs. Microsoft handed Halo to Activision, with the next Halo title now being developed by a new team separate from ongoing Call of Duty development.

A small team at Halo Studios will continue to support the community and in-market games. The future of Halo's development under Activision remains unclear, with questions surrounding the potential reboot of the series and the impact on other studios affected by the restructure.