Activision Will Develop the Next Halo Game as Xbox Restructures Studios

Activision will develop the next Halo game as Microsoft shifts responsibility for the franchise to a new team created specifically for the project.

Xbox chief content officer Matt Booty confirmed the change as part of Microsoft's latest first-party restructuring. The new Halo team will operate within Activision but remain separate from the company's ongoing Call of Duty development and future plans for that series. Microsoft has not revealed the title, release window, platforms, or creative direction of the next Halo game.

Microsoft says Activision is forming a "purpose-built" team specifically to develop the next Halo title. That group will sit separately from the developers working on current and future Call of Duty projects.

Xbox has not identified the developers leading the new team or said whether existing Halo Studios employees will transfer into it. The move gives Activision direct responsibility for development of the franchise's next game while leaving the specifics of that project unannounced.

Halo Studios is not being closed, but its role is being reduced. Microsoft says a small team will remain at the studio to support the Halo community and games already on the market. Development of the next title will instead take place under Activision.

Halo Studios most recently released Halo: Campaign Evolved, its Unreal Engine 5 remake of the original Halo: Combat Evolved campaign. The game launched on July 28, 2026 on Xbox Series X|S, PlayStation 5, and PC with new missions, expanded gameplay, and cross-platform co-op.

Microsoft has not said what long-term development work, if any, will remain with Halo Studios beyond supporting existing games and the community.

The development move is part of a wider reorganization across Microsoft's gaming business.

Microsoft is eliminating 268 roles across Halo Studios, other first-party studios, and Xbox Game Studios management and central functions. The company did not specify how many of those cuts came from Halo Studios alone.

Activision is also expanding its oversight to Rare and World's Edge, while Bethesda is taking responsibility for Obsidian. Playground Games and Turn 10 are being combined into one studio focused on Forza and Fable.

Microsoft says the restructuring is intended to reduce the number of separate business units and place teams that already work closely together under the same leadership. The company says the changes completed since July have brought it roughly three-quarters of the way through the restructuring announced earlier in 2026.