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Microsoft has today confirmed that the next mainline Halo game will be developed by Call of Duty maker Activision, with mass layoffs hitting Halo Studios amid a significant restructure of its Xbox studios setup.
Xbox announced 268 layoffs today “across Halo Studios, other first-party studios, and the XGS management and central functions layer” as part of the ongoing cuts first announced in July. The layoffs, the majority of which are at Halo Studios, come as part of new Xbox boss Asha Sharma’s “reset” of Microsoft’s gaming business that had already seen 1,600 staff lose their jobs in the summer. At the time, Microsoft said another 1,600 staff on top would also go this financial year.
“The actions completed since July, inclusive of the studio divestitures, bring us roughly three-quarters of the way through previously announced restructuring,” Xbox Chief Content Officer Matt Booty said in a blog post. “I am deeply grateful for what our colleagues have built, and I know how difficult today will be for those leaving and the teams around them.”
With Halo Studios gutted, Microsoft has handed Halo to Activision. Activision will develop “the next Halo title,” Booty said, “led by a new, purpose-built team that is separate from

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