Microsoft’s Halo franchise faces a major shift as a new team at Activision takes over the development of the next mainline installment, while sweeping studio restructuring leaves multiple unannounced projects in doubt. Xbox content lead Matt Booty confirmed that Activision is building an independent team to handle the next major title, separating that work from the ongoing development of Call of Duty.
Halo 7 and Studio Restructuring at Halo Studios
Development plans for Halo 7 at the studio formerly known as 343 Industries included a campaign, PvP and PvE modes, and the Forge editor at launch, according to creator and insider reporting by Rebs Gaming. Staff members presented a revised vertical slice of the game to Xbox leadership in September, though the project was still years away from release. Those conceptual plans, along with larger intended gameplay modes cited by the X account Halo Leaks, remain unconfirmed by Microsoft and face an uncertain future as the new Activision team evaluates its own direction for the intellectual property.
https://x.com/leaks_infinite/status/2103258042628186532
The transition coincides with significant workforce reductions across Microsoft’s gaming division. Microsoft confirmed that 268 positions are being cut across Halo Studios, other internal teams, management, and central departments. While studio head Pierre Hintze remains at the helm, insider estimates from Rebs Gaming place the remaining headcount at Halo Studios at approximately 30 employees, shifting the studio’s immediate focus toward supporting existing games and community management while future projects are reassessed.
Unreal Engine Remakes and First Strike Spin-off
Alongside Halo 7, leaked internal proposals included Unreal Engine 5 remakes of Halo 2 and Halo 3, positioned after a planned release of Halo: Campaign Evolved. A smaller spin-off project based on Eric Nylund’s novel First Strike was slated to bridge the narrative gap between the first two games. Targeted for a 2027 release, that spin-off concept featured roughly five campaign missions and a Firefight mode. Microsoft has neither officially announced these titles nor confirmed their cancellation, leaving open whether external studios might eventually take on the remakes under Hintze’s reported smaller-scale production goals.
Frequently Asked Questions
Microsoft confirmed that a newly formed team at Activision is developing the next mainline Halo title independently from Call of Duty operations.
Formerly known as 343 Industries, Halo Studios is retaining a smaller team focused on community management and existing titles amid broader Microsoft layoffs that cut 268 jobs across several Xbox divisions.
No. Reports regarding Unreal Engine 5 remakes, a First Strike spin-off, and Halo 7 concepts originate from industry insiders and have not been acknowledged or verified by Microsoft.