Microsoft lays off 268 Xbox staffers across Halo and other studios, as part of an ongoing gaming "reset"; Activision will take over Halo and two other games (Tom Warren/The Verge)

Xbox, the home of the popular Halo franchise, is undergoing a major restructuring with the shedding of hundreds of jobs as part of a company-wide "reset". In response to this restructuring, the publisher of Call of Duty, Activision, will take over the development of any future Halo games. This shift has been characterized as a "dramatic move" by Windows Central's Jez Corden, and gaming analyst Christopher Dring has raised concerns over its potential impact on the once "crown jewel" status of the Halo series.

The restructuring, which includes the closure of Xbox's Ninja Theory studio and the proposed closure of four other companies, has left questions over the future of these studios. Xbox's chief content officer, Matt Booty, announced that attempts to find a buyer for Ninja Theory had failed, and the studio would now enter into consultation on a proposed closure. Still, potential buyout talks are ongoing.

The restructuring comes after Xbox CEO Asha Sharma revealed in July that the company was beginning the most significant restructure in its history, which has resulted in 1,600 immediate job cuts and a total of 3,600 planned losses. The company attributes the need for the restructuring to the lack of healthy growth in platforms like its subscription service, Game Pass, and the challenges posed by rising computing and hardware costs.

Halo, a military sci-fi shooter series that has been a defining feature of the Xbox brand since its inception in 2001, is set to remain under Xbox's care despite the restructuring. Xbox plans to continue supporting the Halo community, working on existing games, as opposed to focusing on new releases. In an interview with the BBC, Xbox's CEO emphasized the goal of making the greatest Halo game ever, staying true to the series' legacy and its unique appeal.

Activision will lead any new Halo game development, along with managing the World's Edge studio, Rare and its Sea of Thieves series.