What insiders say Halo Studios was up to before losing Halo: 'The next Halo game was years away'

Following Microsoft's decision to drastically reduce the size of Halo Studios and relocate its development focus to Activision, insiders have revealed new details about the company's internal situation. According to reports from The Verge's Tom Warren and YouTuber Rebs Gaming, the layoff of staff came as a surprise to many, with some waiting hours to find out if their jobs were secure. The initial communication about the layoffs was posted on an Xbox blog, followed by notifications sent out throughout the day.

At the time of the layoffs, there were no full production games in development at Halo Studios. However, work on remakes of Halo 2 and Halo 3, a remake of Halo 7, and spinoff campaigns were already underway. One of the short spinoff games was reportedly based on the First Strike novel and was intended to be released between the remakes.

Following the company's downsizing, Halo Studios now only has around 30 employees. Tom Warren notes that the remaining team will be responsible for maintaining existing Halo titles, including Halo Infinite and Campaign Evolved. In contrast, Activision is reportedly constructing a new studio dedicated to the future of the Halo franchise.

While the accounts paint a picture of Halo Studios that is slow-moving, fragmented, and with one foot firmly planted in the past, it is important to note that a single source cannot provide a complete picture of what happened within the company. However, the story presented by these insider reports suggests that work on new Halo content has been ongoing, even as the studio underwent significant changes.

The revelation that some of the talent might be redirected toward the next Halo project has sparked mixed reactions, with some expressing a sense of relief and others lamenting the loss of potential for the beloved series.