Activision Assumes Control of Halo Franchise; Halo Studios Transitions to Support Role

Activision is stepping in to take the reins of the Halo franchise as part of a significant corporate restructuring by Xbox. This shift will see Halo Studios, previously known as 343 Industries, facing another wave of layoffs, with the remaining team members transitioning to a support role under Activision as they work on the next installment of the series.

On September 22, Xbox announced additional layoffs and major corporate changes, just three months after a previous round that saw over 1,600 positions cut in July. The focus now appears to be on consolidating its various studios and franchises, with Halo being one of the most notable changes. Xbox’s chief content officer, Matt Booty, confirmed in a blog post that the upcoming Halo game will be developed by Activision, stating it will be created by “a new, purpose-built team that is separate from ongoing development and plans for Call of Duty.”

Booty also revealed that 268 layoffs would occur across Halo Studios and other Xbox divisions. A small team will remain at Halo Studios to continue “supporting the Halo community and games in-market.” He noted that the layoffs announced as part of the broader “reset” are now 75 percent complete.

“I am deeply grateful for what our colleagues have built,” Booty expressed in his memo. “And I know how difficult today will be for those leaving and the teams around them.”

Additionally, Xbox is transferring World’s Edge (known for Age of Empires) and Rare to Activision as well.

“We’re thrilled to welcome Halo, Rare, and World’s Edge to Activision,” said Activision’s president. “It’s an honor and a responsibility that we do not take lightly. These teams and their games have inspired fans around the world for decades.”

“For Halo, our goal is clear: make the greatest Halo game ever, worthy of its universe and legacy, while staying true to what made players love it in the first place,” he added. “It is a bold ambition, one that this franchise deserves. We have already begun assembling a purpose-built team, unique in capability and talent, ready and excited to deliver this next chapter with the community.”

The Halo series has been under the guidance of Halo Studios/343 Industries since 2007, with that team leading the development of the first Halo remake, Halo 4, Halo 5: Guardians, Halo Infinite, and the recent remake of the original game, Halo: Campaign Evolved, which launched earlier this year. While the studio has seen some successes, it has also faced layoffs and an uncertain future in recent years.

Today’s announcement effectively signals the end of the nearly 20-year run for the studio, with the remaining staff now serving as a support team for Activision.