Xbox Lay Offs Continue With 268 Employees Cut; Activision to Develop Next ‘Halo’ Game as Part of Studio Reorg

Microsoft is restructuring its Xbox division, leading to the elimination of 268 roles across Halo Studios, other first-party studios, and the XGS management layer. In response, the developer of the next mainline Halo game has shifted from Halo Studios, formerly known as 343 Industries, to Activision. Microsoft's Xbox Studios boss, Matt Booty, announced that Activision will be developing the new game with a dedicated team separate from Call of Duty.

A small group at Halo Studios will continue to support the Halo community and existing games. Activision president, Rob Kostich, expressed his excitement and responsibility in taking on the Halo franchise, stating their goal is to create the greatest Halo game ever, while respecting the franchise's legacy. This move is part of a broader restructuring at Microsoft, which has resulted in job losses and the closure of studios like Ninja Theory, as well as consolidations such as those involving Obsidian and Rare.

Halo Studios, which has been responsible for several mainline Halo titles since Bungie's independence from Microsoft in 2007, will now play a more limited role in the ongoing Halo series.