Following the sweeping layoffs announced in July as part of a strategic “reset” for its gaming division, Xbox has revealed a significant reorganization of its internal studio structure. Xbox CEO Asha Sharma had previously identified the lack of cohesion among teams, studios, and functions as a core issue, noting that their independent operations made achieving shared goals difficult. The latest restructuring appears designed to centralize authority and reduce this operational independence, particularly for flagship franchises.
The most dramatic change concerns the Halo series, which will now fall under the oversight of Activision, the publisher behind the Call of Duty franchise. Microsoft confirmed that Halo Studios, formerly known as 343 Industries, will remain operational but will be reduced to a “small team” focused solely on supporting the player community. This downsizing comes on the heels of 268 newly announced layoffs within the division.
Rob Kostich, President of Activision, addressed the transition in a statement provided to Kotaku, emphasizing the studio’s commitment to the franchise’s legacy. “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,” Kostich said. He described the ambition as bold but necessary, adding that Activision has already begun assembling a specialized team equipped with the talent required to deliver the next installment of the series.
Is anyone else worried about what this means for Halo’s unique identity, or are we just happy to see new content finally?
This is shockingly bold. Handing over one of Xbox’s crown jewels to Activision feels like a massive gamble on their part.
Activision making the best Halo? I’ll believe it when I see a game that isn’t pure microtransactions.