Microsoft hands next Halo game to Activision, cuts 268 Xbox roles
Microsoft told Team Xbox staff in a memo called 'Continuing Our Reset' that it is eliminating 268 positions across Halo Studios and other first-party studios, and forming a new team distinct from Call of Duty to develop the next Halo title under Activision. A smaller group at Halo Studios will remain to support existing games and the current community, ending its sole stewardship of the franchise since 2010.
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Activision now oversees development on both of Xbox's flagship FPS franchises, Call of Duty and Halo, which could allow Microsoft to share resources and production pipelines between the two teams. The move follows CEO Asha Sharma's comment that the Xbox business 'is not healthy' and broader layoffs of 3,200 employees, suggesting the restructuring is driven largely by cost pressures rather than creative strategy alone.
- 268 roles cut across Halo Studios and other first-party Xbox teams
- Activision will lead a new, separate team developing the next Halo game
- Move follows Xbox's broader 3,200-employee layoffs and cost-cutting push
Xbox Wireless Controller — With Halo's future in flux, there's no better time to make sure your gaming setup is ready for whatever comes next, whether that's revisiting Halo: Campaign Evolved or jumping into the next Call of Duty title. The Xbox Wireless Controller offers reliable, comfortable play across Xbox consoles and Windows PCs, making it a solid companion for any FPS fan following this franchise shakeup.4
See Xbox Wireless Controller on Amazon → Affiliate link — we may earn a commission on purchases, at no extra cost to you. Product picked by AI based on this article; it is not a tested recommendation.Source: cnet.com — Joe Hindy, 2026-09-22
Published there as: “Xbox’s Latest Restructuring Puts Call of Duty Developer Activision in Charge of Halo”
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